[ctguy87]

Yale isn't going anywhere, but I find it funny that it's Looney behind another tax increase proposal. Nothing was learned from his comments on GE, apparently.

Florida governor invites Yale University to move, avoid taxes - Connecticut Post

“It is our hope that these rich schools can use their wealth to create job opportunities, rather than simply to get richer,’’ Looney told the committee. “The goal is that universities with over $10 billion would either use their endowment to expand access to education and create innovative jobs, or would share a small percentage of their retained earnings with the state’s taxpayers, so that we can accomplish these same goals.’’

Let's ignore the ancillary revenue that gets pumped into the city and state because of Yale and just ask for the money directly

[HumpDay]

Originally Posted by ctguy87

Yale isn't going anywhere, but I find it funny that it's Looney behind another tax increase proposal. Nothing was learned from his comments on GE, apparently.

Florida governor invites Yale University to move, avoid taxes - Connecticut Post



Let's ignore the ancillary revenue that gets pumped into the city and state because of Yale and just ask for the money directly

Rick Scott is a sore thumb. Worry about what's going on in your state. All he does is get on his knees and beg companies to come to his state. Great to know his state will be underwater in 100 years.

[ctguy87]

Originally Posted by HumpDay

Rick Scott is a sore thumb. Worry about what's going on in your state. All he does is get on his knees and beg companies to come to his state. Great to know his state will be underwater in 100 years.

I agree. My post is more about Looney and how he thinks more tax is the answer for all CT's problems.

[HumpDay]

Originally Posted by ctguy87

I agree. My post is more about Looney and how he thinks more tax is the answer for all CT's problems.

Nobody should trust Rick Scott. He was in the executive team of a company that committed the largest Medicare fraud in U.S. history. Florida is known for supporting frauds and crooks.

[JayCT]

Originally Posted by ctguy87

Yale isn't going anywhere, but I find it funny that it's Looney behind another tax increase proposal. Nothing was learned from his comments on GE, apparently.

Florida governor invites Yale University to move, avoid taxes - Connecticut Post



Let's ignore the ancillary revenue that gets pumped into the city and state because of Yale and just ask for the money directly

Funny I sat with an accountant friend yesterday and he explained to me the logic. Yale has more than $22 billion in their endowment. That endowment makes something like $8 billion a year in investments. The college takes in something like $4 billion from students and their operating costs are only like $5 billion. So if the university is taking in $12 billion annually but only spending $5 billion to run the school, why is the other $7 billion not taxed (these are the figures I recall but he showed me the universities tax return from last year which is available online). It is not serving any purpose other than to make the school more money. Shouldn't the school be giving its students more money? Isn't it now just become an investment company? I am not saying I agree it should be taxed, but it makes you think where the line is between a non-profit higher educational institution and a vehicle for making more money. Jay

[BicoastalAnn]

Originally Posted by JayCT

Funny I sat with an accountant friend yesterday and he explained to me the logic. Yale has more than $22 billion in their endowment. That endowment makes something like $8 billion a year in investments. The college takes in something like $4 billion from students and their operating costs are only like $5 billion. So if the university is taking in $12 billion annually but only spending $5 billion to run the school, why is the other $7 billion not taxed (these are the figures I recall but he showed me the universities tax return from last year which is available online). It is not serving any purpose other than to make the school more money. Shouldn't the school be giving its students more money? Isn't it now just become an investment company? I am not saying I agree it should be taxed, but it makes you think where the line is between a non-profit higher educational institution and a vehicle for making more money. Jay

Just because it has a bigger "rainy day fund" - and is better at fundraising or saving - than other colleges doesn't mean it deserves to get hit with special taxes. That extra money can go toward a lot of things that do benefit students outside of routine operating costs... big capital improvement projects, international expansions, new endowed programs, whatever. You don't need to be constantly cash-strapped or operating hand to mouth to be considered a legitimate non-profit. The line between non-profit and profit is where the money goes... as long as the endowment isn't paying huge dividends to investors (donors in this case) or staff and it stays earmarked for educational purposes then I don't think there's anything sketchy about it.

[JayCT]

Originally Posted by BicoastalAnn

Just because it has a bigger "rainy day fund" - and is better at fundraising or saving - than other colleges doesn't mean it deserves to get hit with special taxes. That extra money can go toward a lot of things that do benefit students outside of routine operating costs... big capital improvement projects, international expansions, new endowed programs, whatever. You don't need to be constantly cash-strapped or operating hand to mouth to be considered a legitimate non-profit. The line between non-profit and profit is where the money goes... as long as the endowment isn't paying huge dividends to investors (donors in this case) or staff and it stays earmarked for educational purposes then I don't think there's anything sketchy about it.

Again I am NOT endorsing the tax but with all the programs they offer already, they are only spending $5 billion. The rest is pure profit. Makes me wonder. Jay

[Mike 75]

Originally Posted by BicoastalAnn

Just because it has a bigger "rainy day fund" - and is better at fundraising or saving - than other colleges doesn't mean it deserves to get hit with special taxes. That extra money can go toward a lot of things that do benefit students outside of routine operating costs... big capital improvement projects, international expansions, new endowed programs, whatever. You don't need to be constantly cash-strapped or operating hand to mouth to be considered a legitimate non-profit. The line between non-profit and profit is where the money goes... as long as the endowment isn't paying huge dividends to investors (donors in this case) or staff and it stays earmarked for educational purposes then I don't think there's anything sketchy about it.

This. Looney is trying to justify this tax by claiming that Yale is not spending enough of its money creating jobs in New Haven. This is a ludicrous statement on its face, as Yale is the reason why New Haven is one of the few cities in the state that's thriving. But he's not proposing requiring Yale to spend a percentage of its endowment returns on job creation to maintain its non-profit status, he just wants to tax the returns to feed the state's spending habit. Its a totally disingenuous argument.

[JayCT]

Bob's Furniture, the Connecticut based discount furniture retailer, is expanding its offices here in Manchester and is expected to add 125 new jobs there over the next 5 years. Sounds good to me. Jay

Furniture chain gets state funds to expand | HartfordBusiness.com

[Henry10]

Originally Posted by JayCT

Funny I sat with an accountant friend yesterday and he explained to me the logic. Yale has more than $22 billion in their endowment. That endowment makes something like $8 billion a year in investments. The college takes in something like $4 billion from students and their operating costs are only like $5 billion. So if the university is taking in $12 billion annually but only spending $5 billion to run the school, why is the other $7 billion not taxed (these are the figures I recall but he showed me the universities tax return from last year which is available online). It is not serving any purpose other than to make the school more money. Shouldn't the school be giving its students more money?

Who are you to question? Yale is a private institutions, and it can decide on its own which students to subsidize. I suspect Yale subsidizes plenty of its students. Yale's endowment is its endowment only. Not the taxpayers.

You want to play God -- and social-experiment? CT have UConn for it.

CT needs to stop being "innovative" how to pick people's pocket, and re-distribute "wealth" to others. It is the reason CT is going downhill, and people and companies are looking to GTFO.

Originally Posted by JayCT

Again I am NOT endorsing the tax but with all the programs they offer already, they are only spending $5 billion. The rest is pure profit. Makes me wonder. Jay

That's typical liberal thinking of fiscal matters, which is detrimental to CT. State needs to reject it, not do more of it.