According to reports from Reuters and CBS, US President Donald Trump announced on May 2 that his administration plans to revoke Harvard University's tax-exempt status.
"We are going to be taking away Harvard's Tax Exempt Status. It's what they deserve!" Trump wrote in a post on his social media platform.
While no specific policy details or timelines have been released, the announcement follows the federal government's earlier decision to freeze over US$2.2 billion in funding for the university.
Under current IRS regulations, Harvard qualifies as a nonprofit educational institution and is exempt from most federal taxes. Additionally, donors to the university benefit from tax deductions for their contributions. Losing this tax-exempt status would not only require Harvard to pay federal taxes but could also significantly reduce its donor support.
The Trump administration has reportedly instructed the IRS to begin the process of revoking Harvard's tax-exempt status. Critics argue that such a move may violate federal law, which prohibits the president from interfering in IRS investigations targeting specific entities. A spokesperson for Harvard described the attempt to revoke the university's tax-exempt status as "without legal basis."
Since taking office in January, Trump has used various measures, including freezing federal funds, launching investigations, and suspending student visas, to pressure Harvard into adopting reforms aligned with his administration's demands. In response, Harvard filed a lawsuit in federal court last month, accusing the administration of infringing on constitutionally protected rights and undermining academic independence.
As of May 1, at least 88 senior faculty members at Harvard have voluntarily pledged 10% of their salaries—amounting to approximately US$2.5 million—to support the university's finances and legal efforts. These faculty members expressed their determination to protect the institution's autonomy, stating they are inspired by Harvard's resistance to Trump's alleged unlawful demands.
(Source: Ta Kung Pao)
Related News:
Harvard rejects Trump administration's demands, faces US$2.2 bn funding freeze
Comment