TRADES Act
Sponsored By: Senator Moody, Ashley [R-FL]
Introduced
Summary
Raises the tax on private colleges' investment income and directs the extra money to Career and Technical Education. This bill would increase the excise tax on private college endowment investment income and use the added revenue to support Perkins CTE programs.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Higher tax on private college endowments
If enacted, this bill would raise the federal excise tax on net investment income for private colleges and universities from 8% to 15%. The change would apply for taxable years beginning after the date that is 12 months after enactment. Affected institutions would pay higher federal excise taxes on the investment income covered by section 4968. The bill does not tell institutions how to respond; it only changes the tax rate and when it starts.
More career and technical education funding
If enacted, the Treasury would each year transfer to the Perkins career and technical education program an amount equal to the extra revenue raised by the endowment excise tax increase in the prior 12 months. These transfers would be in addition to any other amounts made available under title I of the Perkins Act. The transfers would be drawn from the general fund and would start once the excise tax change takes effect for taxable years beginning more than 12 months after enactment.
Sponsors & CoSponsors
Sponsor
Moody, Ashley [R-FL]
FL • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov