The Hollis Amendment 23 



($1,076,795) derived from public taxation. To the annual 

 income for higher education from bequests and gifts 

 should be added the combined annual contributions to the 

 educational museums and public libraries of New York, 

 namely, $1,864,600. 



In the United States, for the entire field of college, uni- 

 versity and technological education only, the annual in- 

 come (1914-1915) from private benefactions is $36,842,- 

 421, as compared with $38,061,768 from taxation (see 

 Report of United States Commissioner of Education, 

 1916). In other words, the income from private endow- 

 ment is equal to the income from public taxation. We 

 believe this is entirely without parallel in any country. 



Great individual contribution to education and philan- 

 thropy is a peculiarly American custom, which will be 

 fostered and encouraged by wise governmental taxation 

 and retarded by unwise or hostile legislation. Whatever 

 new burdens we have to carry in order to support this 

 great struggle for humanity, liberty and justice, let these 

 burdens fall as lightly as possible upon education, philan- 

 thropy or religion, which are the mainsprings of our na- 

 tional life. At best they will undoubtedly suffer from the 

 burdens of necessary taxation, and that these burdens may 

 not be carried to the point of the reduction or elimination 

 of such gifts, we urge that the present law be amended to 

 exempt such bequests, legacies and gifts. 



In this connection we point out that American opinion 

 as embodied in the enactments of thirty-five States is prac- 

 tically unanimous in favor of such exemption. 



The Hollis Amendment was especially supported by a Com- 

 mittee representing Columbia University, headed by Professor 

 Samuel McCune Lindsay. The Hollis Amendment was ap- 

 proved by the Finance Committee of the United States Senate, 

 and by the Ways and Means Committee of the House of Repre- 

 sentatives, and was adopted by both Houses. Thus one very 

 important result was secured, namely, that gifts for educational 

 and philanthropic purposes to the extent of fifteen per cent, of 

 income are exempt from taxation. It is extremely important 



