Lawmakers considere a tax on college endowments.

Here is the story.

Legislators have asked state finance officials to study a plan that would impose a 2.5 percent annual assessment on colleges with endowments over $1 billion, an amount now exceeded by nine Massachusetts institutions.

I have two thoughts here.

(1) Welcome to Taxachusetts! Liberals almost always want higher taxes, so there you go.
(2) I actually think this is a good idea. Why should colleges be able to accumulate wealth without paying taxes on it? In general, I think all institutions should pay taxes, because it would discourage people from establishing non-profits with the intention of tax avoidance.

The idea has prompted a range of questions, including whether it is legal to infringe upon private colleges' tax-exempt status or single them out based on their wealth. It also faces significant opposition from the colleges and some skeptical lawmakers.

I'm sorry but "whether it is legal to infringe upon private colleges' tax exempt status" leaves me wondering why it is 'legal' for the government to abscond with half of my family's income???

But proponents say the colleges' vast accumulations of wealth - Harvard University has the biggest endowment at $34 billion - and their often modest contributions to their host communities justify the assessment.

Harvard's amazing endowment keeps growing, as does their tuition. The tuition at Harvard, is $32,557 for 2008-2009 year, a 3.5% increase over last year. This does not include room and board and the other associated fees, which brings the total closer to $50,000.

University leaders criticized the plan as a gimmick that would backfire by hurting institutions that are pivotal to the state.

"You'd be taxing success here," said Kevin Casey, Harvard's associate vice president for government, community, and public affairs. "Over time, this would put us at a real competitive disadvantage, which would drastically hurt the Commonwealth."

Oh please. "Taxing success"? Ummm, that is also what the income tax does. Unless Harvard eliminates or drastically reduces the tuition (they have $34.9 billion in their rainy day fund, after all) and actually makes it possible for people with lower incomes to attend the prestigious university, I really don't think they are in any position to whine about being taxed on their massive endowment.