{"id":34214,"date":"2025-07-14T05:41:12","date_gmt":"2025-07-14T05:41:12","guid":{"rendered":"https:\/\/financialrush.com\/?p=34214"},"modified":"2025-07-14T05:41:12","modified_gmt":"2025-07-14T05:41:12","slug":"trump-soaks-the-rich","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=34214","title":{"rendered":"Trump soaks the rich"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<p>Unlock the Editor\u2019s Digest for free<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\"><span>Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=c3049a30-2f89-422d-8919-61152326088c\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>The Big Beautiful Bill Act is sometimes characterised as <a href=\"https:\/\/www.ft.com\/content\/7eca7746-79a4-4eef-92ce-a63f71be58b7\" data-trackable=\"link\">being regressive<\/a> \u2014 slashing both taxes for the rich and <a href=\"https:\/\/www.ft.com\/content\/fd271d97-a2cc-47ae-933c-be2d0970f05e\" data-trackable=\"link\">medicaid for the poor<\/a>.<\/p>\n<p>We haven\u2019t seen a better dataviz making this point than this one from Sam Fleming and Myles McCormick\u2019s <a href=\"https:\/\/www.ft.com\/content\/7eca7746-79a4-4eef-92ce-a63f71be58b7\" data-trackable=\"link\">MainFT write up, <\/a>charting the distributional impact of the Act:<\/p>\n<div class=\"n-content-layout\" data-component=\"flourish\" data-component-id=\"24027779\" data-component-type=\"flourish-in-article\">\n<figure class=\"n-content-picture n-content-layout__container\"><a href=\"#24027779\"><picture data-asset-type=\"flourish\" data-flourish-id=\"24027779\" data-flourish-type=\"visualisation\">\n<div id=\"24027779\" class=\"cp-message o-message o-message--inform o-message--notice\" data-o-component=\"o-message\">\n<div class=\"o-message__container\">\n<div class=\"o-message__content\">\n<p class=\"o-message__content-main\">Some content could not load. Check your internet connection or browser settings.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<p><\/picture><\/a><\/figure>\n<\/div>\n<p>But the Act wasn\u2019t just about cuts to taxes and benefits. It also hiked taxes on well-heeled universities.<\/p>\n<p>US colleges are endowed with serious money. In fact, according to the National Association of College and University Business Officers, they held over $860bn of assets at the end of 2024.<\/p>\n<div class=\"n-content-layout\" data-component=\"flourish\" data-component-id=\"24158031\" data-component-type=\"flourish-in-article\">\n<figure class=\"n-content-picture n-content-layout__container\"><a href=\"#24158031\"><picture data-asset-type=\"flourish\" data-flourish-id=\"24158031\" data-flourish-type=\"visualisation\">\n<div id=\"24158031\" class=\"cp-message o-message o-message--inform o-message--notice\" data-o-component=\"o-message\">\n<div class=\"o-message__container\">\n<div class=\"o-message__content\">\n<p class=\"o-message__content-main\">Some content could not load. Check your internet connection or browser settings.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<p><img decoding=\"async\" src=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/https%3A%2F%2Fpublic.flourish.studio%2Fvisualisation%2F24158031%2Fthumbnail%3FcacheBuster%3D973595?source=cp-content-pipeline&amp;fit=scale-down&amp;quality=highest&amp;width=2626&amp;dpr=1\" alt=\"\"\/><\/picture><\/a><\/figure>\n<\/div>\n<p>In Trump\u2019s first term those with more than 500 students became subject to a 1.4 per cent tax on investment income. There was talk of this tax being jacked up to 21 per cent \u2014 with <a href=\"https:\/\/www.taxnotes.com\/featured-news\/vances-tax-views-swing-toward-economic-populism\/2024\/07\/16\/7kh2x\" data-trackable=\"link\">JD Vance advocating<\/a> that it be hiked to 35 per cent. But in the end the BBB Act brought in a tax that is based on who they are, how big they are, and how big the endowment is.<\/p>\n<p>Rather than write more words, we thought we\u2019d convey the details through the medium of dataviz. Scroll away:<\/p>\n<div class=\"n-content-layout\" data-component=\"flourish\" data-component-id=\"3218839\" data-component-type=\"flourish-in-article\">\n<figure class=\"n-content-picture n-content-layout__container\"><a href=\"#3218839\"><picture data-asset-type=\"flourish\" data-flourish-id=\"3218839\" data-flourish-type=\"story\">\n<div id=\"3218839\" class=\"cp-message o-message o-message--inform o-message--notice\" data-o-component=\"o-message\">\n<div class=\"o-message__container\">\n<div class=\"o-message__content\">\n<p class=\"o-message__content-main\">Some content could not load. Check your internet connection or browser settings.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<p><img decoding=\"async\" src=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/https%3A%2F%2Fpublic.flourish.studio%2Fstory%2F3218839%2Fthumbnail%3FcacheBuster%3D973595?source=cp-content-pipeline&amp;fit=scale-down&amp;quality=highest&amp;width=2626&amp;dpr=1\" alt=\"\"\/><\/picture><\/a><\/figure>\n<\/div>\n<p>So as far as we can tell using data from the National Association of College and University Business Officers, it\u2019s really Harvard, Yale, Princeton, MIT and Stanford that will get hit with the full 8 per cent tax. <\/p>\n<p>By our calculations, endowment income at these five colleges accounts for an average 37 per cent of their income \u2014 though we\u2019re not sure whether this figure is legally identical to the definition of investment income targeted by the tax.<\/p>\n<p>How much money will this raise? Congress\u2019s <a href=\"https:\/\/www.jct.gov\/publications\/2025\/jcx-35-25\/\" data-trackable=\"link\">Joint Committee on Taxation reckons<\/a> around $760mn over the next decade. And this cumulative 10 year tax haul will help pay for the overall BBB tax package. <\/p>\n<p>Or at least 15 hours of it.<\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/c3049a30-2f89-422d-8919-61152326088c\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this&hellip;\n","protected":false},"author":5,"featured_media":34215,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-34214","post","type-post","status-publish","format-standard","has-post-thumbnail","category-us","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/34214","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=34214"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/34214\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/34215"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=34214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=34214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=34214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}