But if Americans take the perspective that their premier universities should contribute tax dollars, whilst other countries fund their universities, American universities will have marginally less resources. This will compound, because international moguls who can donate to a good school in country A (and have 20℅ taxed off the top) or in country B (and have none taxed) might well prefer country B.

The end result is a plummet in the Ivy League's international standing. Academics are remarkably focused on their research; prestige and nation matter little to many of thr top ones. What attracts academics are resources and colleagues. Without resources, the colleagues become worse, so both wither. Suddenly you'll have American politicians wondering why their schools aren't the best anymore.