In this compelling segment, guest Henry Olsen makes a clear case for why it’s smart to raise taxes on private university endowments, especially those held by elite institutions like Harvard and Yale. Olsen argues that the original justification for granting these universities tax-exempt status—limited government funding and a need for indirect support—no longer applies. Today, these schools are deeply embedded in government systems, receive substantial public subsidies, and operate much like large private corporations.

“They’re no different than GM,” Olsen says, challenging the idea that these institutions should continue receiving special tax treatment. He highlights a deep imbalance in the tax system: we heavily tax blue-collar labor while subsidizing white-collar academic institutions. It’s a dynamic he believes needs to shift—lowering the burden on working-class jobs and increasing it on wealthy, powerful universities.

The hosts agree, pointing out how universities today often function more like global businesses than educational nonprofits—spending big on advertising, wielding influence across industries, and prioritizing growth over public good. Olsen notes that the proposed tax increases on these endowments would still fall well below what comparable private-sector businesses pay, yet would still generate hundreds of millions of dollars per year.

For example, Harvard currently pays around $250 million annually. If it were taxed at the rate a private corporation is, it would owe closer to $700 million. That kind of revenue, Olsen argues, represents a major untapped source of funding for public education—especially ironic given that these same institutions constantly advocate for more federal investment in education.

The conversation ends with a powerful takeaway: if private universities want to operate like businesses, they should be taxed like them too. It’s time to stop protecting their wealth while shifting the tax burden to working Americans.

Transcript

**Sam Stone: **Before we let you go, Henry, we have about two minutes left here. I want to touch on one other piece you've done. Why it's smart to raise taxes on private school endowments. So why is it smart?

**Henry Olson: **Well, you know, it's smart because... These institutions are like any other institution now. You know, we had all these tax exempt things when there was no big welfare state, no big federal government or state government funding of private universities. So they needed the indirect subsidy. And now they get money from here. They get money from there.

They're massively subsidized and they're massively interconnected government. In other words, they're no different than GM. So why should they get a tax break that GM doesn't get? What we've been doing for decades is subsidizing white-collar book work and taxing blue-collar hands and foot work.

**Sam Stone: **I like that. Yeah. I like that. That's a great line, Henry.

**Henry Olson: **I think we need to start leveling the playing field, and that means taxing white-collar book work and lowering the burden on blue-collar hand and foot work.

**Sam Stone: **One of the things I think a lot of people don't realize, Michelle, and you know this from ASU. These large universities now, they very much operate as corporations, as global businesses.

**Michelle Ugenti-Rita: **Absolutely. with the bottom line, with making sure that they advertise, I mean, and have influence in a whole array of areas outside of just public education and educating our youth. Yes, they're almost indistinguishable between, you know, an educational institution and a private enterprise.

And to the point our guest is making, and they perhaps should be treated the same then.

**Sam Stone: **Yeah. How much are we talking with some of these universities, Henry?

**Henry Olson: **The tax that we are talking about now is actually still well below what the private sector companies would pay. And you're talking about hundreds of millions of dollars a year that each of these large places is going to pay. And it exempts public universities.

But if you had the same private tax rate that large companies pay on a place like Harvard instead of paying an estimated 250 million dollars a year they'd probably be paying something like 700 million dollars a year. You add that up it's actually real money

**Sam Stone: **It's real money these are the people that tell us we need more money for our public education system all the time that sounds like a great source Henry Olson thank you so much for joining us we love having you on the program folks follow him at Henry Olson epc breaking battlegrounds coming right back.

Listen to the full episode of Breaking Battlegrounds anywhere you stream your podcasts!