As reconciliation talks continue, House Ways and Means Chairman Jason Smith revealed that the Republican-led tax bill will hike up Harvard University’s endowment tax, in addition to codifying many of President Donald Trump’s campaign promises.
During a members-only GOP conference on Capitol Hill, Smith told members that Harvard’s current 1.4% endowment tax under the 2017 Tax Cuts and Jobs Act will be bumped up to 21%, according to a source on the call. Harvard continues to be in the hot seat after the Trump administration announced they would be canceling millions of dollars in federal grants, noting that taxpayer funds are a “privilege.”
‘We’re delivering on no tax on tips, no tax on overtime pay for the 80 million workers affected, and achieve tax relief for seniors.’
Photo by Andrew Harnik/Getty Images
In addition to the increased endowment tax on Harvard, the GOP tax bill is also aiming to codify Trump’s incredibly popular policies like no tax on tips and no tax on overtime, according to a source on the call. Other line items are focused on boosting pro-family policies, like indexing the child tax credit for inflation and improving adoption tax credits.
“We’re delivering on no tax on tips, no tax on overtime pay for the 80 million workers affected, and achieve tax relief for seniors,” Smith said during the call.
The legislation is also focused on reinvesting in Americans and includes 100% immediate expensing for new factories in the United States, according to a source on the call. The bill further bolsters American manufacturing by including deductibility of auto loan interest for American-made cars.
Photo by Anna Moneymaker/Getty Images
These provisions mirror Trump’s directives to incentivize American manufacturing while renegotiating international trade deals to benefit the United States. In just the last week, Trump has finalized major trade deals with both the United Kingdom and China.
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Jason smith, Ways and means committee, Capitol hill, Congress, House republicans, Tax bill, Reconciliation, Big beautiful bill, Donald trump, Harvard, Linda mcmahon, Scott bessent, Trade war, Tariffs, China, United kingdom, Trade deal, Howard lutnick, Pro-family, No tax on tips, Child tax credit, American manufacturing, Adoption, Politics
