Yale University’s Democrat-Socialist aka Progressive professors and administrators are reaping what they sow – maybe. The university has a $25.6 billion endowment, but one Democrat in Connecticut has a great idea about steal ing it from them which shows you where these Progressives are willing to go.
Connecticut is a big government, spendthrift state with bloated entitlement programs and too many government workers. As expected, they can no longer pay for their budget shortfalls which run $220 million this year. The plan is to get the money by taxing the unspent earnings of the university endowments with more than $10 billion in assets.
Only Yale fits the bill so it’s a Yale tax on money that was gifted and has been already taxed many times. The school earned $2.6 billion last year.
Martin Looney [good name for him?] wants them to share a little of their earnings.
Specifically he says Yale must “share a small percentage of their retained earnings with the state’s taxpayers, so that we could accomplish these same goals.”
In other words, the government will steal Yale’s money and redistribute it. Connecticut’s worker pensions are less than 50% funded because they used them as an ATM and now they want Yale to pay for their decadence and incompetence.
Hartford taxes anything that moves and as a result, GE moved to Boston and 105,000 residents left for other states this year alone. They will look like Vermont soon where the rich never reside.
Mr. Looney said euphemistically, “Connecticut’s economy is going through a transformation.”
Yale’s endowment funds about a third of the university’s $3.2 billion operating budget including $2 billion in worker wages and benefits. It also finances financial aid that allows students from families making less than $65,000—equal to the annual cost of attendance—to attend for free. The average need-based scholarship is $43,989. Yale also makes $8.2 million in “voluntary payments” to the city of New Haven, sponsors full scholarships for New Haven public school students to attend in-state universities, and provides housing subsidies for university employees.
Other less-wealthy tax-exempt nonprofits are going to Yale’s defense because they are next. This is what happens when you run out of other peoples’ money – they rob poorer entities next. While it’s hard to muster sympathy for Progressives getting a taste of their own castor oil, this will spread to other states and poison our tax system further.
This is a dangerous precedent-setting back door tax and violates the Yale charter which is supposed to shield them from this unfair taxation but no one is safe from the Progressives, not even other Progressives. Once thievery is permitted, this is what happens.