Democratic Candidate: State Should Tax College Endowments

Jay Gonzalez

BOSTON (AP) — Democratic candidate for governor Jay Gonzalez says Massachusetts could raise $1 billion for education and transportation by taxing the endowments of the state’s wealthiest colleges and universities.

Gonzalez said the plan he unveiled Wednesday would bring in revenue needed to help make child care and preschool affordable for all families and fully fund public schools while also improving the state’s roads, bridges and public transportation systems.

The plan would pay for the improvements by imposing a 1.6 percent tax on the endowments of private, nonprofit colleges and universities with endowment funds exceeding $1 billion.

Gonzalez said there are nine colleges and universities that meet the criteria including: Harvard University, MIT, Williams, Boston College, Amherst, Wellesley, Smith, Tufts University, and Boston University.

Gonzalez said his plan wouldn’t increase taxes on families.