Not a Good Idea While I agree with the sentiment that wealthy colleges sometimes act more like hedge-fund managers than institutions of higher learning, taxing their endowments is bad policy:

Legislators have asked state finance officials to study a plan that would impose a 2.5 percent annual assessment on colleges with endowments over $1 billion, an amount now exceeded by nine Massachusetts institutions. The proposal, which higher education specialists believe is the first of its kind across the country, drew surprising support at a debate on the State House budget last week and is attracting attention in higher education circles nationally.

I *would* support a bill forcing these colleges to waive tuition for all students who qualify for financial aid. Or, maybe, if a tax is inevitable, having the revenues go to a trust fund to pay for scholarships state wide. But tossing it into the general budget would simply be a money grab and piss off a lot of philanthropists.

Here's the money (pun intended) quote of the article:

"The Williams indoor golf nets are paid by all of us through federal tax policy," said Sloane, a Williams College graduate. "These institutions have brought this upon themselves."

That's gonna' leave a mark. Somehow I doubt Mr. Sloane is coming back for reunion week.  ¶ 7:55 AM