Monday, May 19, 2008
"Massachusetts legislators, demonstrating a growing resentment against the wealth of elite universities in tight economic times, are studying a plan to levy a 2.5% annual tax on the portion of college endowments that exceed $1 billion. ... Based on the most recent size of Harvard's endowment, the university would have to shell out more than $840 million annually. ... Kevin Casey, a spokesman for Harvard ... said Harvard would have to raise money to pay the tax because so much of the university's endowment is already tied up by restrictions on gifts", WSJ, 9 May 2008.
Delicious. A liberal institution like Harvard might be hoist on its own petard. "Raise money to pay the tax", says Casey. Is he Ernest Thayer's "Mighty Casey", who struck out? Why? Do idiots run Harvard? Larry Summers, former Harvard president, what do you think? Harvard should have some HBS professors draft moving plans. To Texas. Harvard, have Exxon which moved its headquarters to Irving in 1990, plan the move. Which I'm sure Exxon will do gladly. For a fee. How much is at stake? Let's capitalize $840 million at 9%, that's $9.333 billion Harvard could lose. Let's fill those moving vans! Now.