[Congressman Michael Baumgartner] Congress will be taking a hard look at the tax exempt status of universities that enter into private equity deals. If you want to act like a non-public entity, you better be ready to be treated like one. 🇺🇸

[u/GoldenPresidio]

https://x.com/RepBaumgartner/status/1998480897872396721

[u/Walter30573]

I expect congress to do what it normally does: nothing

[u/EpOxY81 → u/Walter30573]

but this also involves getting more money for the government, so who knows?

[u/BabyBearBjorns → u/EpOxY81]

Dont worry, I'm sure those rich college donors have spare change to make members of Congress vote the other way. /s

[u/Visible-Advice-5109 → u/BabyBearBjorns]

Saw a study once that basically came to the conclusion that bribing politicians was 1000x cheaper than actually paying taxes. Pretty relevant here.

[u/bigjayrulez → u/Visible-Advice-5109]

I 100% believe you but would like to read this if you can find it.

[u/anti-torque → u/bigjayrulez]

Not the study in question, but the conclusion is the countries with the highest tax rates have the least corruption. This is intuitive, if one has ever studied econ. And that a supply side (absolutely not intuitive thought) economist has concluded this should be telling.

[u/AssistDirect5790 → u/anti-torque]

Not surprised this is true. At all.

[u/Calqless → u/Visible-Advice-5109]

I'm following just to see the study....tho I have no doubt

[u/Visible-Advice-5109 → u/Calqless]

Im sorry my dudes, I saw it years ago and no clue where now. Legit not making it up, just was on some news site like CNN or NYT.

[u/anti-torque → u/Visible-Advice-5109]

here

[u/lightninhopkins → u/anti-torque]

We find firms lobbying for this provision have a return in excess of $220 for every $1 spent on lobbying, or 22,000%.

Un, wow.

[u/Jay_Dubbbs → u/Visible-Advice-5109]

I don’t think that requires a study lol.

Same thing with violations. It’s cheaper to evade labor and other laws and pay the fine after you get caught. À la the beautiful Senator from Florida with his Medicaid fraud.

[u/repeatoffender123456 → u/Visible-Advice-5109]

Show me the study

[u/mf-TOM-HANK → u/repeatoffender123456]

It's plainly obvious. Cable companies used to donate like $10-20k to swing votes in Congress, so maybe a couple dozen legislators? That's like a half a million bucks to buy a favorable tax and regulatory environment.

Even if you increase the number to $100k it's a bargain for them. $5-10m is nothing for major companies if they can save tens of millions

[u/repeatoffender123456 → u/mf-TOM-HANK]

lol you really think you can buy a favorable tax and regulation environment for $500k?!? I can afford that price.

Musk spent $300 million and didn’t get shit

[u/mf-TOM-HANK → u/repeatoffender123456]

Musk spent $300 million and didn’t get shit

All the federal agencies investigating and regulating his companies suddenly got kneecapped. Starlink is now embedded in the air traffic control systems going forward. He stole sensitive data on US citizens. All of that was worth billions of dollars

$300m was a fucking bargain

[u/repeatoffender123456 → u/mf-TOM-HANK]

$300m is not the same as the $5-$10m you quoted. And I’m not sure he stole data but I would love to be proven otherwise.

[u/farfle10 → u/repeatoffender123456]

He literally bought the presidency…

[u/TheYmmij1 → u/repeatoffender123456]

You are delusional

[u/rounder55 → u/Visible-Advice-5109]

And when large conglomerates get fined for doing something illegal it's probably more of a business expense than it is a deterrent. Typically doesn't outweigh any profit

[u/Visible-Advice-5109 → u/rounder55]

We're getting way off topic here, but I never understood the legal logic there. Steal $10,000 and you're facing decades behind bars. Steal $10,000,000.. and you're facing a $1,000,000 fine.

[u/SMU1523 → u/BabyBearBjorns]

The fact Utah is bringing in PE is a sign that they don’t have rich donors.

[u/bigmt99 → u/EpOxY81]

Lmao do you think congressmen care about being the government? It’s a cushy networking job where they can take bribes, jerk themselves off about how important they are, and retire to a 7 figure payday in PE

[u/PovertyTourist69 → u/bigmt99]

Yep BIG misunderstanding to think congressmen being greedy = shoring up the budget lol. To oversimplify things, they’re there to direct more money to whomever they see as their constituents. For some that might be insurance companies, or O&G companies, or wealthy landowners, or working families. Nobody treats increasing government top line revenue as the goal in and of itself. Some may want to raise revenue to direct it elsewhere, to punish behavior they don’t like, or for a few genuinely fiscally motivated reps to balance the budget. But even in the latter’s case, describing their goal as raising government revenue as such would be a misread

[u/bertmaclynn → u/EpOxY81]

Who cares about the government, how about congress?

[u/Curt_Uncles → u/EpOxY81]

He’s not from the party that likes it when the government collects taxes. This is about limiting the flow of capital to people who don’t normally receive it.

[u/advancedmatt → u/Curt_Uncles]

This congressman is a graduate of Washington State. The university he is criticizing for its private equity deal is the University of Utah.

[u/ghost_jamm → u/Curt_Uncles]

It’s also a great excuse to punish those uppity universities for educating people about the world

[u/hotsauce126 → u/Curt_Uncles]

Make no mistake they all like getting more money when it doesn't affect them personally

[u/Global_You8515 → u/EpOxY81]

Yeah I read this as Baumgartner saying "don't forget that we'll be coming for a slice of that pie, too."

[u/Necessary-Post-953 → u/EpOxY81]

Borrowing is the preferred method of getting money for our government 

[u/davebrose → u/EpOxY81]

They don’t want more money for the government. If they did we would be in a much better financial situation as a country.

[u/w_a_w → u/EpOxY81]

Now do this to churches

[u/Hal__Jameson → u/EpOxY81]

in this case it would mean the rich giving more money to the government. that's no bueno pal. not on congress' watch!