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MA lawmakers propose taxing college legacy admissions

July 6, 2023
Rummell _Richard_Harvard_University_1906_watercolor_WikipediaCommons

Harvard University, pictured here in Richard Rummell’s 1906 watercolor landscape, would pay the most if a Massachusetts tax bill tied to students who get in based on family connections is enacted. (Image Courtesy of Arader Galleries via Wikipedia Commons)

Following the Supreme Court’s ruling that effectively ends affirmative action in college admissions, a proposal by two Massachusetts state lawmakers is getting a lot of attention.

Their bill would tax rich colleges in the Bay State, including Harvard, whose policies were the basis of the high court decision, and put the money into a trust to fund community colleges is getting a lot of attention.

Dubbed “an Act to advance fairness, integrity, and excellence in higher education admissions,” the bill targets the state’s schools that offer legacy admissions. This is giving preferences to applicants whose parents attended the college.

However, the proposal by Rep. Simon Cataldo and Sen. Pavel M. Payano was introduced in the Massachusetts legislature on Jan. 19. That day the two Democrats filed a joint petition, accompanied by House Bill No. 3760.

Ten of their fellow legislators signed on as cosponsors of the measure, which is pending in the Joint Committee on Higher Education.

Richest schools would pay most: The tax could be based on a threshold of current endowment value per student.

Cambridge-based Harvard, for example, would be assessed an estimated $103 million a year. That’s the largest fee, since the university, with its $50.1 billion endowment, is the richest in the United States.

“The schools could not simultaneously defend race-conscious affirmative action – which benefitted historically disadvantaged minorities — while also insisting on maintaining admissions policies that elevated the chances of generationally wealthy applicants above those very groups that race-conscious affirmative action was meant to help,” Cataldo, a former teacher, told Bloomberg/Fortune magazine.

That article has more on the bill, as does a piece from FT.com.

And, like the Massachusetts lawmakers who anticipated the Supreme Court’s ruling and its potential effects in other areas of college admissions, PBS Newshour in May devoted an episode of its Rethinking College series to the legacy students’ debate.

You also might find these items of interest:

 

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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