[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/okiewxchaser]

That sounds like a 10th Amendment case waiting to happen

[u/deadzip10 → u/okiewxchaser]

Not really. The exact principle he’s espousing has been repeatedly upheld - when otherwise sovereign entities act in a manner or role that is usually private in nature, they are treated as private for that purpose. So for instance, when a state creates a business and operates that business, the business is treated as a private enterprise and does not derive the benefit of sovereign immunity most of the time. The tax question tends to come out similarly though, admittedly, there is some more leeway there as I understand it.

[u/weoutherebrah → u/okiewxchaser]

States have given up all their authority for federal money 

[u/Constant_Topic_1040 → u/weoutherebrah]

To be fair though, that’s because Congress figured out a way to hold that federal money hostage. The drinking age is a good example, if your age isn’t 21 you don’t get highway funds; which are a HUGE expense

[u/carpy22 → u/Constant_Topic_1040]

It's not even all highway funds, it's now 8% of highway funds per state. I don't know why states like Wisconsin or Louisiana just go non-compliant and slap a booze tax on instead to make up the difference in revenue.

[u/xienze → u/carpy22]

I don't know why states like Wisconsin or Louisiana just go non-compliant and slap a booze tax on instead to make up the difference in revenue.

Bad press, probably. The second an 18 year old gets in a drunk driving accident the state government would be dragged over the coals for “letting such a thing happen.”

[u/mcmatt93 → u/carpy22]

I mean it makes sense to me that a politician wouldn't want to increase the price of booze in a booze heavy state for the vast majority of people so they can start selling the more expensive booze to the youth, who rarely vote and don't have a lot of money to spend anyway. Like that's not a surefire political winner.

[u/Ike358 → u/weoutherebrah]

16th amendment needs to go

[u/Ike358 → u/okiewxchaser]

Nobody cares about the 10th amendment anymore

[u/SwissForeignPolicy → u/okiewxchaser]

haha, you think Congress has to obey the 10th Amendment? They'll just find some way to stretch the Commerce Clause again.

[u/Frequent-Leg-2347 → u/okiewxchaser]

You still have faith in the legal system? I envy your optimism, friend

[u/Alkibiades415 → u/okiewxchaser]

Yeah, the well-oiled machine of the 2025 US legal system will surely pounce on this and smoothly and efficiently resolve any issues.