Tax plan takes aim at the wealthy private universities

Angela N. / Flickr CC

House Republicans have included a provision in their tax plan that could hit the pocketbooks of private universities with large endowments, such as Harvard, Stanford and Yale.

The new rule says that private colleges and universities with at least 500 fulltime students would be required to pay a 1.4% excise tax on annual investment income, so long as total market value is more than $100,000 per student.