Early Friday morning, Donald Trump announced that his administration would be removing Harvard’s exempt tax status. This move, experts say, will increase the tax burden of Ivy League schools substantially.
Trump stated on Truth Social, “We are going to take away Harvard’s tax exemption status.” “They deserve it!”
Last month, Trump suggested that the university “perhaps” lose its tax exemption. He also accused the university of acting as a political entity.
MassLive reported on Thursday that Harvard’s endowment is the largest of any U.S. institution, with an estimated $52 billion.
House Republicans also propose raising the tax rate on endowment profit at certain universities, such as Harvard, from 1.4% to 21%. The Massachusetts University could be hit with annual taxes exceeding $500 million under that proposal.
