President Donald Trump announced his intention to revoke Harvard University’s tax-exempt status, reiterating a threat he had previously made against the prestigious Massachusetts school.
This move forms part of his broader criticism aimed at elite universities.
The big picture: The university promptly responded, labeling such an action as an unlawful misuse of the U.S. tax code, citing specific regulations that make it illegal for the president, vice president, or White House employees to request an audit of a particular individual or entity by the Internal Revenue Service (IRS).
- Harvard had already initiated a lawsuit against the Trump administration after it declared the freezing of federal grants amounting to $2.2 billion, mainly designated for supporting medical and scientific research at the Ivy League institution. This lawsuit was a direct response to the government’s actions that placed a hold on these crucial funds.
- This announcement from the president follows his previous remarks on social media suggesting that Harvard should potentially be taxed as a political entity and lose its tax-exempt status if it continues to promote political, ideological, or “terrorist inspired/supporting” activities, implying a stance against certain ideological or political inclinations within the university.
Go deeper: A White House spokesperson clarified that any forthcoming actions by the IRS were independent of the president’s statements and that any audits or investigations were initiated prior to Trump’s social media post, attempting to disassociate the actions of the IRS from the president’s remarks.
- Harvard emphasized that the revocation of its tax-exempt status would be unprecedented and unlawful, a sentiment echoed by advocacy groups and other non-profit organizations. The university highlighted the detrimental impact such a move would have on student scholarships, medical research, and technological advancements essential for driving economic growth.
