While overturning previous Romney-era fiscal vetoes, that gave us a billion dollar-plus surplus, and giving us an almost billion dollar deficit overnight, Massachusetts is eagerly looking for more businesses to soak for revenue, and justified or not, they now have their eyes on tax-exempt endowments from colleges.

According to The Boston Channel,

It's all part of a plan being discussed on Beacon Hill aimed at finding new revenue for the state budget. Lawmakers are considering taxing endowments at huge universities and colleges around the state. House representatives have a proposal that would impose a 2.5 percent tax on endowments that exceed $1 billion.

An example of how much the top schools would pay if the state adopted such a plan would require Harvard, with its $34.9 billion endowment, to pay $875 million to the state. The Massachusetts Institute of Technology, with its $9.9 billion endowment, would pay $247 million to the state. Boston College, with its $1.75 billion endowment would pay $43.75 million in new taxes to the state.

To be fair, Congress is also looking into this latest example of Robbin’ Hood politics.

That irks Sen. Chuck Grassley, R-Iowa, who has suggested colleges with endowments of $500 million and up be required to spend 5% each year, just as private foundations must, and use it "to help families and students afford college.” Under that rule, 141 colleges this year would have been affected, up from 97 in 2003.

"I don't begrudge them their financial success," he said in a statement. "I just want to remind them that their money is tax-exempt. They're supposed to offer public benefit in return for (that) exemption."

Now while the huge endowments are in the crosshairs, many in government who apparently know little about balancing their own books, are aiming at some of those college gifts as a way of balancing their books, now in the red. Some are also arguing that colleges should spend more of those funds to justify their tax-exempt status.  Continued...