Government intends to withdraw Harvard's tax-free standing, as asserted by Trump
Fresh Article:
In an unexpected escalation, President Trump has once again clashed with Harvard University, threatening to strip the prestigious Ivy League institution of its tax-exempt status, amidst a heated power play over free speech, political ideology, and academic funding across American academia.
Trump took to Truth Social on a Friday morning, proclaiming, "Harvard is going to lose its Tax Exemption. They deserve it!" This threat, reminiscent of an April 15 trial balloon, follows the Internal Revenue Service's planned actions to carry out the idea.
However, a university spokesperson told CNN that there is no legal basis for rescinding Harvard's tax-exempt status. Such an unprecedented action, they argued, could jeopardize the university's ability to carry out its educational mission, draining funds from crucial medical research programs, financial aid for students, and opportunities for innovation.
By law, presidents are prohibited from directing the IRS to investigate anyone. If the IRS were to decide that Harvard's tax-exempt status should be revoked, the agency would have to formally notify the university and allow it a chance to challenge the decision. The IRS did not immediately respond to CNN's questions about how Trump's announcement might be implemented.
Massachusetts Democratic Senator Ed Markey criticized Trump's actions, describing them as a blatant attempt to force Harvard to comply with his ideology. He also stressed that the threats have had a negative impact on life-saving research and people's livelihoods.
Trump's announcement comes on the same day his administration released a spending proposal to Congress that would cut nearly $2.5 billion from the IRS budget. The White House claimed that this budget would restore the IRS as a neutral arbiter, no longer using enforcement strategies against citizens.
Revoking the tax-exempt status of an institution of higher education is extremely rare. The IRS took such a step in 1970 against Bob Jones University due to its discriminatory interracial dating policy, a decision since upheld by the Supreme Court. The university rescinded its policy in 2000, and its tax exemption was restored in 2017.
Harvard has become the Trump administration's most high-profile adversary after the White House's Joint Task Force to Combat Antisemitism announced a freeze of more than $2 billion in federal research funding. The university has since sued for the release of this funding, with a resolution unlikely until midsummer at the earliest.
The Trump administration has also threatened to revoke Harvard's ability to host international students if it doesn't submit to a list of demands, including eliminating diversity, equity, and inclusion programs, banning masks at campus protests, implementing merit-based hiring and admissions changes, turning over foreign students' discipline records, and reducing the power held by faculty and administrators who are considered more committed to activism than scholarship.
Harvard's president has vowed, "We will not surrender our independence or relinquish our constitutional rights." In response, scholars and prominent Jewish organizations have expressed concern with the administration's far-reaching attacks on Harvard.
In recent days, Harvard has taken symbolic steps towards the Trump administration's ultimatums, renaming its Office for Equity, Diversity, Inclusion, and Belonging as Community and Campus Life and reportedly cutting off resources for affinity group celebrations during commencement.
This story has been updated with additional information. CNN's Kit Maher and Zachary B. Wolf contributed to this report.
Enrichment Data:The President of the United States does not have the authority to directly revoke a university's tax-exempt status. The power to modify or revoke tax-exempt status lies with the Internal Revenue Service (IRS), under the oversight of the U.S. Department of the Treasury. The IRS follows specific legal procedures and guidelines outlined by the Internal Revenue Code and Treasury Regulations when reviewing tax-exempt status. Any attempt to revoke a university's tax-exempt status must follow established procedures, which typically involve an examination by the IRS and the opportunity for the institution to respond to any concerns. If a President were to attempt to unilaterally revoke tax-exempt status, such an action would likely be challenged in court as an overreach of executive authority. The decision would need to be legally justified under existing tax laws. Revoking a university's tax-exempt status could significantly impact its ability to operate effectively, as it would lead to increased financial burdens and potentially limit its capacity to carry out educational activities. Any attempt by a President to directly revoke tax-exempt status would face legal challenges, emphasizing the importance of adhering to established legal processes. Such actions might also involve broader public policy considerations regarding education, taxation, and the role of executive authority.
- The President's threats to strip Harvard's tax-exempt status, as announced on Truth Social, are historically unprecedented and have raised concerns about free speech and political ideology in American academia.
- Despite the President's statement, a university spokesperson maintains that there is no legal basis for rescinding Harvard's tax-exempt status, as such an action could jeopardize the university's ability to fund crucial medical research, financial aid for students, and opportunities for innovation.
- Massachusetts Democratic Senator Ed Markey criticized Trump's actions, describing them as a blatant attempt to force Harvard to comply with his ideology and negatively impacting life-saving research and people's livelihoods.
- By law, Presidents are prohibited from directing the IRS to investigate anyone, and any decision to revoke a university's tax-exempt status would require formal notification and an opportunity for the institution to challenge the decision.
- The removal of a university's tax-exempt status can have severe implications, as demonstrated by the IRS's actions against Bob Jones University in 1970 due to its discriminatory interracial dating policy.
- The Trump administration's attacks on Harvard's independence and constitutional rights, including threats to revoke its tax-exempt status, have received opposition from scholars and prominent Jewish organizations, raising concerns about war-and-conflicts, policy-and-legislation, crime-and-justice, education-and-self-development, and general-news.
