Oksana Koltko (J.D. 2010, John Marshall) has published Comment, Chasing Profits—Disregarding Values: Legal Persona of Elite Schools and Their Destructive Tax-Exempt Status, 42 J. Marshall L. Rev. 1073 (2009). Here is part of the Conclusion:

[O]nce undercapitalized higher education has undergone a dramatic transformation into lavishly lucrative enterprises. The tax code, with its obsolete vision, has failed to adjust to this transformation. The government's attempts to adapt proved insufficient. Thus, this Comment proposes a “uniformed taxation,” where the difference between the “cumulative revenue figure” and the strictly construed “university's maintenance expenses” is taxed at the rate one-half of those currently imposed on the unrelated business income and on actual corporations.

Reflecting on the above, one may argue that we cannot impose a blanket tax (regardless of education-related activities) on schools because they are too important. I would respond that they indeed are; however, no matter how important something may be, it should not abuse its privileges. Otherwise, the Scale of Themis will be tipped toward disbalance, inequity, and injustice. In the end, universities will benefit by not paying Business Tax at the rate paid by wholly for-profit corporations, the federal government will increase its revenue, and the citizenry will not carry the entire burden of universities' tax-exempt status.