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I think cuts would have a lumpier impact - eg a university might decide not to build a new building, but extend the life of an old one by a few years

Administrators would make cuts to areas where they have the least impact (or the least short-term impact). Especially where the impact is relatively small at 1.4% of income - if the tax were larger, I think across the board cuts would be more likely.

But going by your # of financial aid is 25% of endowment income spending, I can see that the impact wouldn't be zero.


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