The investments revealed by the Paradise Papers do not break the law. Outside of the U.S. tax jurisdiction the investments the University and others have made in offshore tax havens stays within the bounds of the law. The ability to regulate lies with the Caribbean islands, which choose to have little or no corporate tax and benefit from having foreign corporations and investments.
Two events have recently made the University’s endowment a subject of debate: the GOP tax plan proposal and the release of the Paradise Papers. Together, these highlight the multifaceted controversy over how universities handle their billion-dollar endowments and how the government moderates that use. On one hand, University officials expressed formal opposition to the proposed taxes on the grounds that the endowment funds academic work and financial aid, and on the other, Princeton and others have drawn criticism precisely for employing funds in offshore investment.
With the opening of the new Lewis Center for the Arts, the University bristles with opportunities for engagement and exchange in the creative arts. Combining the disciplines of music, theater, creative writing, painting, and much more, the new center furthers the University's efforts to promote the creative humanities as a fundamental element of a liberal arts education.
