Student indebtedness is the last hot issue that Americans are arguing about, but there is a clear solution to the problem – a solution that no one is talking about.
Far-left guerrillas, such as MP Alexandre Acacia-Cortes, want the government to forgive up to $ 50,000 in student debt to all student borrowers. President Biden wants the government to forgive up to $ 10,000 in student debt to all student borrowers. And most Republicans and Conservatives don’t want the government to forgive student debt, rightly noting that it forces taxpayers to take on a bill that was never theirs.
There is a better solution. Make universities help pay.
The vast majority of universities and colleges, both public and private, have 501 (c) (3) status and are exempt from IRS taxes. That needs to change.
Over the years, colleges and universities have continued to significantly raise tuition costs. In fact, the average cost of tuition in college and other fees in public four-year institutions has increased by 179.2% over the past two decades with an average annual increase of 9%, while the average cost of tuition and fees in private institutions has increased by 124.2%. % compared to the same period with an average annual increase of 6.2%.
We hear a lot about inflation these days, but the rise in college tuition has outpaced inflation by 171.5%. The average annual salary of a dean of students in America is nearly $ 85,000. They may serve educational purposes, but these institutions are obviously profitable and should be taxed.
Indeed, the only thing that is growing faster than the cost of college is the significant funds that these institutions guard, like dragons protecting their treasures. Last year, when most Americans were still suffering the economic effects of the COVID-19 pandemic and began to face an even harsher economic reality of sky-high inflation and ever-increasing costs, colleges and universities were floating in money.
A study by the National Association of Business Officers of Colleges and Universities and the American Association of Insurance and Rent Teachers found that in 2021, the average provision of universities / colleges increased by a whopping 35%, with 19% of American colleges and universities receiving more. than $ 1 billion. One. Billion.
Think about it. If we want to solve the problem of student debt – and it is estimated that every fourth American who owes it, it is certainly a problem – then why not address it at source?
American colleges and universities are consistently increasing costs for students by dragging them into debt while at the same time making insane profits from their funds, while paying zero taxes to the government. This means that the American taxpayer – you and I – subsidize these institutions, some of which have more assets than hedge funds. Not to mention the major role they played in advancing the extreme left, radicalizing students and, as a result, heating up divisions in American society.
Republicans are likely to take control of the House of Representatives in 2022, and if they do, I suggest they set up a commission to study ways to tax universities and colleges to help cover the cost of astronomical student debt in America, which they helped run. It’s time to make America’s colleges and universities pay their fair share.
• Julio Gonzalez is the founder of Engineered Tax Services.