The 43% college tuition income tax rate

Like many wealthy universities, Harvard offers only "need-based" financial aid, which means that rich parents need to pay much more than poor ones. Using the calculator at the site listed above, you can estimate the marginal income tax rate Harvard imposes. Assuming zero student assets, Harvard expects parents to contribute 10% of income up to $ 150K, which is $ 15K for parents earning $ 150K. Above that level, the marginal income tax is much higher. Parents earning $ 235K are expected to pay $ 52K. The marginal tax rate for income rising to $ 150K to $ 235K is (52-15) / (235-150) = 43.5%. This is of course on top of federal and state income taxes. College faculty vote overwhelmingly Democratic, and it 's no wonder that their employers punish the successful. I 'd like to see big college endowments subject to the taxes on capital gains, dividend, and interest that ordinary people pay. (Excerpt) Read more at npc.fas.harvard.edu …