The solution may be to base the tax on the portion of spending on actual academic faculty, teaching, and research, and facilities, and a standard allowance for

The solution may be to base the tax on the portion of spending on actual academic faculty, teaching, and research, and facilities, and a standard allowance for administration. any admin spending beyond that standard rate results in commensurate taxes for the endowment. There is a precedent in the insurance industry, where they are allotted something like 13% for administration, and everything else must go to actual patient care expenses. Surely it would be straightforward to figure out a reasonable core efficient administration figure.