Changes in tax legislation and policy can have a major impact on Princeton’s ability to carry out its mission, and on the lives of its students and employees. For example, tuition waivers for graduate students are not subject to taxation.  If these waivers were subject to taxation, American graduate education would be significantly damaged -- either students would be deterred from obtaining graduate degrees or providing the education would be much more costly to universities (or both).  The tax code also enables universities to provide tax-exempt tuition benefits for the dependents of our employees and use tax-exempt bonds to finance new construction.

Princeton’s ability to achieve all aspects of its teaching and research mission, including, among other things, the nation’s best undergraduate financial aid program, support for graduate students and world class research programs, depends on the generosity of its alumni and donors through charitable giving and growth in the University’s endowment. Taxes on the endowment that limit growth and any diminution in the value of the charitable deduction erode universities’ ability to preserve program quality, pursue new initiations and enhance affordability.