So how would this play out? As tax revenue? As tax rebates for us? As stimulus checks? I'm not sure I get this. If they're not paying taxes right now, and are in fact getting our tax dollars, this is just a way to claw back some of our tax dollars that we gave them in the first place? If we get rid of income tax, or all taxes, in favor of tariff revenue, would we continue to give universities grants from our tariff revenue and then pass on the government's cut of the patents to us?

Somoene help me get this.

ChatGPT to the rescue:

🔑 How It Would Work in Theory

Howard Lutnick’s idea is essentially to tie taxpayer funding of university research to partial public ownership of resulting patents. Right now:

-Universities get billions in federal grants (NIH, NSF, DoD, etc.).

-When they invent something (a drug, chip design, AI model), the university owns the patent under the Bayh–Dole Act (1980).

-The university can then license that patent to companies and keep the royalties, with only indirect public benefit.

Under Lutnick’s model:

-Government co-ownership: If taxpayers funded the research, the U.S. government would own a portion of the patents.

-Revenue stream: When universities license those patents to private industry, the government would receive a cut of the royalties or licensing fees.

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💵 Where the Money Could Go

If the government collects patent revenue, it could be directed in several ways:

-General Treasury Revenue – most likely scenario. It would offset federal spending, like corporate taxes do now.

-Targeted Programs – e.g. funding more research, reducing deficits, or subsidizing public health.

-Direct Rebates / Stimulus – less likely unless lawmakers deliberately design a “taxpayer dividend” program.

-Tax Reductions – in theory, higher patent revenue could reduce pressure on income or payroll taxes, but only if Congress earmarks it that way.

So unless specifically legislated, this would not show up as a stimulus check or rebate. It would be like any other government revenue stream.

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🏛 If Taxes Were Replaced by Tariffs

You asked: “If we got rid of income tax and funded the government with tariffs, would we still give universities grants, and would the patent revenue pass back to us?”

-Yes, universities could still get federal funding — the funding source doesn’t matter (tariffs vs income tax).

-Patent revenue would still belong to the government. If tariff revenue replaced income taxes, the government might use patent royalties to either:

-Lower tariffs,

-Fund federal programs,

-Or (if designed that way) distribute surplus back to citizens.

But unless a dividend mechanism is written into law (like Alaska’s oil dividend), taxpayers would not automatically get a check.

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⚖️ The Core Idea

It’s not a rebate system for individuals. It’s a claw-back of public investment so the government (and by extension taxpayers) aren’t shut out of profits created with their own money.

Right now, pharma and tech companies make billions commercializing university patents while taxpayers only see indirect benefits. Lutnick’s idea is to let the public share in the upside.