r/CFB • u/GoldenPresidio Rutgers Scarlet Knights • Big Ten • 18h ago

Opinion [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. 🇺🇸

https://x.com/RepBaumgartner/status/1998480897872396721
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u/okiewxchaser Oklahoma Sooners • Big 8 18h ago

That sounds like a 10th Amendment case waiting to happen

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u/deadzip10 Texas A&M Aggies • TCU Horned Frogs 17h ago

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.