{"id":26589,"date":"2025-05-02T15:36:51","date_gmt":"2025-05-02T15:36:51","guid":{"rendered":"https:\/\/usdailys.com\/?p=26589"},"modified":"2025-05-02T15:36:51","modified_gmt":"2025-05-02T15:36:51","slug":"trump-to-take-away-harvards-tax-exempt-status-its-what-they-deserve","status":"publish","type":"post","link":"https:\/\/usdailys.com\/?p=26589","title":{"rendered":"Trump to take away Harvard\u2019s tax-exempt status: \u2018It\u2019s what they deserve!\u2019"},"content":{"rendered":"

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President Trump<\/a>\u00a0on Friday said he is stripping Harvard University of its tax exempt status.<\/p>\n

\u201cWe are going to be taking away Harvard\u2019s Tax Exempt Status. It\u2019s what they deserve!\u201d he said in a Truth Social post.<\/p>\n

The move comes just weeks after the Trump administration froze $2.2 billion in multiyear federal grants over the elite\u00a0Ivy League school\u2019s<\/a>\u00a0refusal to help stamp out alleged antisemitism and hate on campus.<\/p>\n

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Trump walks to Marine One in Washington, DC, on May 1, 2025.\u00a0REUTERS<\/span><\/figcaption><\/figure>\n
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People walk on campus at Harvard University on April 15, 2025.\u00a0REUTERS<\/span><\/figcaption><\/figure>\n
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At the time, Trump had floated the possibility of targeting the Cambridge, Massachusetts, university\u2019s tax-exempt status if it continued to push \u201cpolitical, ideological, and terrorist inspired\/supporting \u2018Sickness?\u2019\u201d on its students.<\/p>\n

\u201cRemember, Tax Exempt Status is totally contingent on acting in the PUBLIC INTEREST!\u201d he said.<\/p>\n

Tax-exempt status, which is decided by the Internal Revenue Service, enables universities to receive hefty financial gifts from the country\u2019s richest donors who want to decrease their tax burdens and means\u00a0the institutions don\u2019t pay income taxes on any net earnings.<\/p>\n

Still, federal tax law prohibits the president or other senior officials from requesting that an IRS employee conduct or terminate an audit or investigation.<\/p>\n

It wasn\u2019t immediately clear what argument the White House would make to strip Harvard of its status.<\/p>\n

Harvard\u2019s tax exemptions<\/a>\u00a0have been instrumental in helping the elite school amass the nation\u2019s largest university endowment at roughly $53 billion \u2014 from which it earned about $2.4 billion in the 2024 fiscal year.<\/p>\n

The Ivy League\u2019s hefty endowment proceeds reportedly fund\u00a0about 37.5%\u00a0<\/a>of its $6.4 billion operating budget. The school\u2019s $686 million in annual federal funding makes up 16% of the operating budget.<\/p>\n

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President Trump\u2019s administration recently froze multiyear grants to Harvard.\u00a0REUTERS<\/span><\/figcaption><\/figure>\n

Under an altered tax-exempt status, the endowment income\u2019s tax rate could soar from 1.4% to the standard 21% corporate tax rate \u2013 potentially translating to a $525 million annual reduction in funds.<\/p>\n

Howard Abrams, a visiting professor at Harvard Law School and corporate tax specialist, previously told The Post that the actual theoretical reduction was unclear, partly because tuition could be considered taxable income.<\/p>\n

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