SW Houston News

Congressman Troy E. Nehls, representing Texas' 22nd District since 2021, recently addressed the issue of university endowments and tax reform through a series of tweets. He highlighted concerns regarding Princeton University's endowment management and proposed legislative changes to address perceived inequities in investment income taxation.

On February 13, 2025, Congressman Nehls stated that "Princeton is a glaring example of why this system should be reformed. Princeton has been earning almost 10% annually on its endowment for the past decade but pays out only 5% toward scholarships and operations. No wonder the endowment keeps growing." This comment underscores his belief that current practices contribute to disproportionate growth in university endowments.

In another tweet posted on the same day, he introduced his legislative proposal by saying "My bill, the Endowment Tax Fairness Act, is not another cash grab. It is a matter of parity so that all investment income is taxed equally." He emphasized that this initiative aims to ensure fairness in taxation across different entities.

Furthermore, Congressman Nehls drew parallels between individual retirees and university endowments in terms of tax obligations. In his tweet he remarked "If every retiree must pay tax on the investment returns when they draw down their 401k, it’s only fair that large university endowments pay tax on their lucrative investment gains." His argument centers around equity in tax policy application.