US President Donald Trump threatens strip Harvard University Like him Tax-free positionTo intensify the ongoing fight between the White House and the oldest and wealthiest university in the country.
The move came after Harvard rejected a list of policy changes sought by the Trump administration, including hiring, admission and changes in the course.
A day earlier, the administration accumulates over $ 2 billion in federal funding to the university. According to a person familiar with the President’s thinking, Trump was angry with Harvard’s violation of media coverage and decided to pursue the pressure campaign, NYT said.
Trump posted the truth socially and posted, “Perhaps Harvard should lose his tax exemption status and tax as a political entity if it emphasizes political, ideological and terrorist motivated/support ‘illness’? … Taxes are completely casual on acting in public interest!”
Tax-free position under fire
While the White House officials said that IRS would decide independently on tax-free matters, Trump has privately indicated that he is committed to taking Harvard. Losing your non -profit situation can cost universities billions of dollars over time.
Lawrence Summers, former Secretary of Treasury and president of Harvard, quickly responded, “The selective harassment of your political opponents through the tax system is a dictatorial item … It is unconscious and wrong.”
IRS boundaries and legal reality
The federal law prevents the President from directly ordering an IRS inquiry. The agency refused to comment, but experts expressed doubt on any serious threat to Harvard’s position.
Former IRS Commissioner John Koskinan said, “The possibility of obtaining IRS is almost Naxalite to cancel the position of 501 (C) (3) of a major university … The problem is that you are causing people to spend a lot of time and money and defend your tasks.”
Nevertheless, the only possibility of litigation can be a frightening burden, he said.
Despite Harvard’s wealth, billions of stakes
Although Trump’s 2017 tax bill already put a levy on large university arrangements, Harvard’s broad tax-free position allows it to avoid the liabilities and attract large-scale charitable donations.
Harvard’s $ 50 billion is influenced by tax-cutable gifts, often from rich donors such as John Paulson and Kane Griffin.
Summer warned that even if Harvard’s tax status was canceled – it is still unlikely – “This is the progress in medical and scientific research, opportunity for the next generation of Americans and an important magnet for the United States in the world.”
Anti -sematic ideology Charges and political references
Trump officials have alleged Elite university Promoting antismitism and suppressing speech. Karolin Levitt, secretary of the White House press, said, “Why are American taxpayers subsidized to a university in which billions of dollars are already in the bank? … and we should not definitely finance a place where such serious antismitism is present.”
Harvard stands his land
Funding Freeze followed Harvard’s refusal last week, which is to follow the demands of the administration for policy changes and regular progress reports. University President Alan Garber said in a statement:
“There is no government – despite which party is in power – should decide what private universities can teach, which they can accept and hire, and which areas of study and investigation can chase the areas of study and investigation.”
Harvard receives about 9 billion dollars in federal support, with the most affiliated hospitals and the remaining funds in areas such as cancer, space exploration and Alzheimer’s.
While the school is financially firm, other institutions have opted to follow Trump’s terms – Columbia University allegedly signed a compromise with the administration after facing similar pressure.
