Because students at Princeton, Harvard, Stanford, Yale etc on average come from families with above average incomes
Posted by
Roger More (aka rogermore)
Nov 3 '17, 08:18
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A portion of investment income would go into things like student aid that directly benefit students from low income families, but I'd expect that a lot more of it goes into funding projects and services that benefit all students at the university, or all students of a specific faculty (eg a new law library, or hiring a Nobel-winning economist), or maybe reducing student fees.
So most of the benefits of not having an endowment tax would be passed on to students who are most likely to not need it (or kept by the institution itself)
(I mean, I don't have data or specific info on university policies on what they do with income from endowment investments, but that's my expectation)
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