President Donald Trump and Republicans in Congress are working on a megabill that aims to impact elite liberal colleges receiving taxpayer funds with hefty endowments. However, one conservative Christian college has managed to secure an exemption amidst this turmoil.
Hillsdale College, a Christian liberal arts institution in southern Michigan with less than 2,000 students, is among the smaller schools striving to avoid the GOP’s tax proposals targeting large endowments of prestigious universities like Harvard, Princeton, and Yale.
The Unique Position of Hillsdale College
Hillsdale sets itself apart from its counterparts in various ways. Unlike many institutions, it enjoys favor from the modern Republican Party and refuses federal funding, claiming a commitment to independence: “The founders of our nation chose independence. As do we,” declares the college in its advertisements.
Senate Republicans recognized this distinction and included an exemption for schools similar to Hillsdale in their version of the bill.
However, Hillsdale faced opposition in the past, prompting the college to seek professional advocacy earlier this year to navigate the endowment tax proposal.
The Fight for Financial Independence
In its discussions with policymakers, Hillsdale emphasized its opposition to using taxation as a coercive tool, quoting former Supreme Court Chief Justice John Marshall’s view that “the power to tax involves the power to destroy.”
Furthermore, Hillsdale argues that institutions refusing federal funds should be excluded from the endowment tax scheme entirely, encouraging more schools to follow suit, especially considering the current administration’s focus on federal funding for colleges.
The college’s message has resonated positively in Washington, with minimal opposition noted. Hillsdale President Larry Arnn underscored the detrimental impact of taxing independent institutions, emphasizing the need to reward self-reliance rather than dependence on government aid.
Legacy of Independence
Hillsdale’s steadfast refusal of direct government funding since its inception in 1844 reflects its commitment to principles of independence and autonomy. This stance has garnered support from conservative figures like William Buckley and Supreme Court Justice Clarence Thomas.
Recent efforts by Republican leaders to emulate Hillsdale’s approach in other states and educational settings highlight the college’s enduring influence on conservative education.
Despite its significant ties to influential figures and governmental bodies, Hillsdale continues to champion its unique position and advocacy for educational freedom.
As the GOP refines its legislation on endowment taxes, Hillsdale remains a singular entity in its stance against federal funding, raising questions about the future of university taxation policies.
Stay updated on developments regarding Hillsdale College and the evolving landscape of higher education funding.
