Bill 119 HR 446 aims to make changes to the Internal Revenue Code of 1986 by increasing the rate of the excise tax on investment income of private colleges and universities. This means that these institutions would be required to pay a higher tax rate on any income they earn from their investments.
The purpose of this bill is to address concerns about the growing wealth and endowments of private colleges and universities, which some believe are not being used effectively to benefit students or the public. By increasing the tax rate on investment income, supporters of the bill hope to encourage these institutions to spend more of their resources on educational programs, scholarships, and other initiatives that directly benefit students and the community.
Opponents of the bill argue that it unfairly targets private colleges and universities and could have unintended consequences, such as reducing the amount of financial aid available to students or limiting the ability of these institutions to invest in important research and infrastructure projects.
Overall, Bill 119 HR 446 is a controversial piece of legislation that seeks to address issues related to the financial practices of private colleges and universities. It will be important for lawmakers to carefully consider the potential impacts of this bill on higher education institutions and students before making a decision on its passage.