Section 1 Short title
This Act may be cited as the “Endowment Tax Fairness Act”.
Endowment Tax Fairness Act
A BILL
To amend the Internal Revenue Code of 1986 to increase the rate of the excise tax on investment income of private colleges and universities.
Sec. 2 Excise tax based on investment income of private colleges and universities
Increase in rate of tax— Section 4968(a) of the Internal Revenue Code of 1986 is amended by striking “1.4 percent” and inserting “21 percent”.
Effective date— The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
Federal debt reduction— The revenue derived from the amendment made by this section shall be deposited in the general fund of the Treasury and shall be used to reduce the national deficit, to the extent thereof, and thereafter to reduce the national debt.