Warren Flips, Then Flops, on College Tax [OPINION]
U.S. Senator Elizabeth Warren (D-Massachusetts), who just last year opposed a plan by Congressional Republicans to tax university endowments, has apparently had a change of heart.
Democrat gubernatorial nominee Jay Gonzales has proposed a new 1.6 percent tax on endowments for the Commonwealth's nine wealthiest universities. Gonzales says the tax would generate $1 billion in new revenue to fund transportation and education projects. In a statement to the State House News Service, Warren's office says the Senator supports Gonzalez's proposal:
"During the debate on the Republican tax bill, Senator Warren opposed taxing nonprofit colleges to provide billions in giveaways to the wealthy. She strongly supports investments in affordable education and infrastructure, believes there are a number of ways to do so, and applauds Jay for starting this conversation about ways to invest in Massachusetts." - Statement from Warren's office to SHNS
Cutting through the partisan b.s., the Republican plan was proposed to help provide tax relief to working American families. Warren voted against the tax cuts because, as you can see, she believes cutting your taxes is a "giveaway to the wealthy." Bet you didn't know you were so well off, huh?
By the way, taxes cannot be earmarked for a specific purpose. All tax revenues are deposited into the general fund and are seldom spent for their intended purpose.
Under the Gonzalez-Warren tax grab, Harvard would be assessed more than $536 million in annual taxes. Yes, I said $536 million. Who pays for that? Your kids do, over the next 40 years, in the form of student loan repayments. Unless, of course, Warren is elected president; then you pay, too, in the form of much higher taxes to fund her free-college-for-everyone proposal.
The Trump Administration supported an endowment tax to fund the tax cuts. Governor Charlie Baker and Republican U.S. Senate nominee Geoff Diehl do not support taxing university endowments. Nor do I.
A tax on endowments would result in higher tuition for our students. Just say no to new taxes, and say no to Democrats Jay Gonzalez and Elizabeth Warren on November 6--or get ready to pony up.
Barry Richard is the host of The Barry Richard Show on 1420 WBSM New Bedford. He can be heard weekdays from noon to 3 p.m. Contact him at email@example.com and follow him on Twitter @BarryJRichard58. The opinions expressed in this commentary are solely those of the author.