Trump threatens Harvard's tax exempt standing

President Trump on Tuesday floated the thought of revoking Harvard College’s tax exempt standing, an escalation of the funding struggle between the federal authorities and the Ivy League faculty.

“Perhaps Harvard should lose its Tax Exempt Status and be Taxed as a Political Entity if it keeps pushing political, ideological, and terrorist inspired/supporting ‘Sickness?'” Trump posted on Fact Social. “Remember, Tax Exempt Status is totally contingent on acting in the PUBLIC INTEREST!”

Most non-public, nonprofit faculties and universities are exempt from paying federal revenue taxes as a result of they’re categorised as a 501(c)(3) group with an academic mission. Universities do pay different taxes, similar to payroll taxes for workers.

The Trump administration on Friday demanded Harvard change quite a few insurance policies, together with round protesting and variety, fairness and inclusion applications, with a purpose to hold its federal funding. It was the most recent effort by the Trump administration to crack down on faculties and universities seen as being too far left or hostile towards Jewish college students following the Hamas assault on Israel on Oct. 7, 2023.

Harvard on Monday rejected the administration’s calls for.

“No government — regardless of which party is in power — should dictate what private universities can teach, whom they can admit and hire, and which areas of study and inquiry they can pursue,” Harvard President Alan Garber mentioned in his message. 

The Trump administration promptly froze greater than $2 billion in grants to Harvard, however the college’s response earned reward from distinguished Democrats.

“Harvard has set an example for other higher-ed institutions – rejecting an unlawful and ham-handed attempt to stifle academic freedom, while taking concrete steps to make sure all students at Harvard can benefit from an environment of intellectual inquiry, rigorous debate and mutual respect. Let’s hope other institutions follow suit,” former President Obama posted on the social platform X.

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