One of the greatest myths of contemporary higher education involves the designation of a college as ‘for-profit’ or ‘nonprofit.’
Haters of markets tend to loathe for-profit colleges such as the University of Phoenix.
Of course, the University of Phoenix contributes many thousands of dollars in taxes annually, while ‘nonprofit’ colleges like Montana State University pay no taxes. ‘Nonprofit’ colleges are also tax havens for millionaires and billionaires who ‘donate’ to such institutions and get subsidized advertising for decades as their names appear on various ‘nonprofit’ buildings around campuses.
Most for-profit colleges provide far better value to students than do nonprofit colleges.
Now there is news that Connecticut wants Yale University to share its wealth. Facing budget shortfalls and a deep pension hole, Connecticut lawmakers are pushing to tax the investment profits of Yale’s $25 billion endowment. See here.
Yale is located in New Haven, Connecticut. A ‘nonprofit’ university, Yale has amassed its huge endowment fund (which is five times larger than the annual budget of the State of Montana) from wealthy donors who have donated funds to Yale in exchange for tax write-offs.
