Tax Planning Favors Gifts For Colleges
Endowment outlook for institutions of higher learning should be looking up in '51 according to a pamphlet just released by the National Planning Association.
Authored by Beardsley Rumi and Theodore Geiger it is entitled "The Five Percent."
By "The Five Percent" the authors do not mean "the Five Percenter" commissions of lobbyists, but rather a five percent deduction the new federal tax laws allow from net taxable corporate earnings if business invests that amount in educational or welfare projects.
A Dollar Gets Three
Today, they point out, if companies are in the excess profits category, management can be putting up one dollar in gifts for a three dollar tax deduction. If five percent of the nation's net corporate income were actually spent on educational purposes, it would amount to a 2.2 billion dollars.
Sears, Roebuck and Company, Ford Motor Company, Bulova Watch, and R. H. Macy & Company are cited by the pamphlet as already taking advantage of the tax incentive scheme to further educational projects.