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NU could face endowment tax

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Northwestern University is one of about 140 private colleges that would have their endowments taxed under a plan being considered by House Republicans.

The school ranks 31st on a list compiled by the Chronicle of Higher Education of the size of college endowments per full-time student.

The Republican tax plan would impose a 1.4 percent tax on the investment income of private colleges and universities that have at least 500 students and assets of $100,000 or more per full-time student.

Northwestern, the Chronicle reports, has an endowment of $7.5 billion and 17,185 full-time students, or roughly $436,000 in endowment funds for each full-time student.

The endowments are currently untaxed. Advocates claim the new tax would bring in $3 billion in revenue over a decade — one of many new revenue sources being considered to offset proposed tax cuts.

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