Earlier today on Truth Social, President Trump suggested taking away Harvard University's tax-exempt status. This is a good move. As we have written before, the Administration should submit Ivy League universities to an escalating pressure campaign, including using Emergency Economic Powers Act powers to freeze university funds, with the ultimate goal of putting them under direct government conservatorship to reform them.

But here's another idea, which is much broader than the Ivy League. We are all looking for revenue raisers for the poor indebted Federal government.

Every non-profit that has had a DEI program is in violation of the Civil Rights Act. Per the Bob Jones University v. United States precedent, non-profit entities that violate "fundamental public policy" can have their tax-exempt status removed.

The total non-profit sector in the US currently owns approximately $3.8-4.3 trillion in assets. According to our estimates, about $3.2-3.3 trillion of those assets are held by non-religious non-profits, including universities, healthcare nonprofits, and private foundations. That's a juicy pot of money, and it is mostly held and managed by people who hate America. The IRS could, tomorrow, have a blanket decision removing the tax-exempt status of every non-religious non-profit in America that has had a DEI program.

However, this would not raise significant revenue. Organizations would be taxed as corporations at the current corporate tax rate of 21%. However, the vast majority of nonprofits operate at or near break-even, or show a loss, so taxable income would be limited.

These organizations should still lose their tax-exempt status so as to dry up their funding, but they should also be subject to a new tax on their assets. Say: 1% of everything between $1 million and $100 million, 2% of everything between $100 million and $200 million, 3% of everything between $200 million and $1 billion, 5% of everything above $1 billion.

We did some estimates and numbers and estimate that this would generate revenue between $111 and $136 billion for the Federal government. And it would go a long way towards destroying one of the most noxious sectors in America.

Policy News You Need To Know

#Tariffs — More tariff stuff: good article from AEI's Dalibor Rohac: "Structural reforms, not trade wars, will make America great again." (Scott Bessent might say: why not both?)

#Ed — Balanced take from AEI's Rick Hess (who we always pay attention to on education matters) on DOGE cuts to Ed research. A lot of it was ridiculous, but also a lot of it was useful.

#ThinkTank — EPPC has published their 2024 annual report. We've been extremely impressed by their work under President Ryan T. Anderson so we suggest you browse it.

#ThinkTank — More think tank news! We don't usually do this, but it promises to be really good: we're happy to relay that our friends at City Journal now have a podcast! If podcasts are your thing, you should definitely subscribe…after you've subscribed to ours.

#Europe — JD Vance gave an opinion to the British website UnHerd to clarify his views on Europe.

#USPS — Here's Brookings arguing against USPS privatization.