Fine. If it’s not in the public interest. A “private” college shouldn’t be eligible for federal financial aid, tax exempt status, etc just like a bank isn’t. We should tax earnings from their endowments too
"Public interest" isn't an excuse to strip tax exempt status or withhold funding on a whim. The government cannot simply remove the tax exempt status of the NRA or Planned Parenthood because it decides that the organization doesn't serve public interest.
> The government cannot simply remove the tax exempt status of the NRA or Planned Parenthood because it decides that the organization doesn't serve public interest.
The (aggregate) government is the only one who can, as it's the only one who granted the status. The idea that something is ironclad because it's enshrined in law, is a failing to consider history. Laws change.
If you want to argue that it's unlikely, this also depends largely on those who have the money (or power) to fight for the change. I would agree there is not enough public sentiment, despite the wealth inequality implications, for private universities. Planned Parenthood? I think we got awful close.
Either way, it could be done. It is important not to dismiss the possibility.
There are specific laws about university endowments and how they can be spent. There isn't a single vault full of money called 'The Endowment.' It's thousands and thousands of buckets, each earmarked for specific purposes, usually invested so that the university can function off the investment of the endowment monies, instead of the endowment itself. But even so, many if not most of those buckets cannot legally be spent. Stanford can't reach into 'the endowment' and throw money at a problem.
Yes, university donors often give grants to specific programs and initiatives. And those very same donors are the ones that have the biggest stake in preserving legacy admissions. They'd have zero issues funding a legal defense of legacy admissions.
The NRA also doesn’t get public subsidies from the government in the form of student loans nor is their membership exclusive. Anyone can join the NRA and anyone can walk into planned parenthood
And if you want to compare it to a bank - a bank pays taxes
