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Princetonians for Free Speech
Since the beginning of the year, Princetonians for Free Speech has been warning that Princeton and other universities were likely to be hit with a big increase in the current 1.4 % tax on endowment income. Now it is happening.
In the early hours of yesterday morning, the House Ways & Means Committee voted to report out its part of the Reconciliation bill – a.k.a. the “One Big Beautiful Bill.” This massive bill contains numerous tax provisions, including a large increase in the tax rate, now 1.4%, on endowment income. The bill creates a tiered tax rate based on an institution’s “student-adjusted” endowment. There are four rates: 1.4%, 7%, 14%, and 21%. The 21% rate applies to schools with an endowment of at least $2 million per student. It is the same as the corporate tax rate. Princeton qualifies for the 21%. According to one article, others qualifying for the highest rate are Harvard, Yale, Stanford, and MIT. Here is a list of the largest endowments. Princeton is listed at $34 billion. Note that Texas, which has a large endowment, is not covered by the endowment tax because it is a public university.
Christopher Bao and Annie Rupertus
Daily Princetonian
Excerpt: Princeton asked all departments and University units to prepare “separate plans for 5 percent and 10 percent permanent budget cuts to be phased in over the next three years, with some actions to start later this summer” in an email sent to faculty and staff on Monday afternoon — the University’s most dramatic budgetary guidance yet following a tumultuous semester for higher education.
The email, sent by Provost Jennifer Rexford and Executive Vice President Katie Callow-Wright, explicitly acknowledged the potential for layoffs to be part of budget reductions. “Cuts of this magnitude to our budget cannot be achieved without changes to some operations and the associated elimination of some staff positions,” they wrote.
David Montgomery ‘83
Princeton Alumni Weekly
Excerpt: For the first time in memory, Princeton is inviting alumni, faculty, students, and allies to lend their voices to a broad campaign of political advocacy and public affirmation in response to the Trump administration’s unprecedented attacks on research funding and academic freedom in American higher education. “To my knowledge, this is a new kind of initiative for the University,” President Christopher Eisgruber ’83 told PAW in an early May interview about the campaign, which is called “Stand Up for Princeton and Higher Education.”
Hugh E. Brennan
October 12, 2023
It is amusing how our best and brightest are willing to subvert the law in the interest of their ideology. I might say in service of their religion. Princeton undergraduate admissions are a limited and valuable commodity virtually guaranteeing entry to the elite of American society. The idea that immutable characteristics of race or ethnicity enter into the equation is subversive of republican citizenship. Justice Harlan’s courageous statement “our constitution is color-blind” in his famous Plessy v Ferguson dissent is, now in our increasingly diverse population, more important as the lodestar of our jurisprudence than ever. That American children of East and South Asian descent should be forced through an increasingly narrowed gate is as atrocious as when there were “too many” Jews. Somehow, a Korean grocer’s kid is tasked with making up for slavery and Jim Crow.
That the public has caught on to this vicious racial gerrymandering scheme is evident in the rapid increase in college applicants claiming indigenous or Hispanic identities. Should DNA tests be required along with essays?
Reflect that our great universities join the antebellum South, Nazi Germany, and apartheid South Africa in their obsession with race. Not very good company to keep.