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US colleges face major tax blow in Trump's proposed IRS rules on race
US colleges face major tax blow in Trump's proposed IRS rules on race

Straits Times

time2 days ago

  • Business
  • Straits Times

US colleges face major tax blow in Trump's proposed IRS rules on race

The Trump administration and Harvard University (above) have been engaged in a public battle over governance issues including Diversity, Equity and Inclusion policies. PHOTO: REUTERS The Trump administration is privately considering unleashing what advocates and critics agree would be one of its biggest cudgels yet to pressure colleges to end slews of programmes and practices benefiting students who are racial minorities. The Treasury Department is weighing a change to Internal Revenue Service (IRS) policies to allow the revocation of tax-exempt status for colleges that consider race in student admissions, scholarships and other areas. If enacted, it would take the administration's reshaping of higher education well beyond the public battles with Harvard University and Columbia University. Non-profit status is core to the finances of more than 1,500 private colleges and universities – from wealthy bastions such as Duke and Vanderbilt, to smaller schools including Vermont's Middlebury and Oregon's Willamette. Revoking that would not just threaten billions in additional taxes, it would cut off the pipeline of philanthropy that has seeded and expanded schools for decades. Even groups known to back conservative ideas were startled. 'I've never seen anything like this,' said Mr Armand Alacbay, senior vice-president of strategy at the American Council of Trustees and Alumni. For many universities, 'losing their tax-exempt status would be existential, as they're highly reliant on philanthropic support'. The proposal would have to make it through an extensive rule-making process, legal experts say, and even if the measure is put in place and the IRS seeks to revoke a college's tax perks, the school would likely take the fight to court. Non-profit status frees schools from paying corporate income tax, helps them get breaks on property taxes and allows them to sell bonds that pay tax-exempt interest, reducing borrowing costs. It also boosts funding by incentivising donors, letting them deduct gifts from their own taxes. Mr Trump has threatened to revoke Harvard's tax-exempt status in posts on his Truth Social platform. He has also signalled interest in challenging it elsewhere. 'Tax-exempt status, that's a privilege – it's really a privilege,' he said in the Oval Office in April. 'And it's been abused by a lot more than Harvard, too.' His threat was swiftly decried as out of his jurisdiction by Democrats and some Republicans. But the Treasury Department's proposals could bring his administration a step closer toward revoking Harvard's tax status and potentially challenging other schools if they do not abide by officials' demands to adopt race-blind policies and programmes. A Treasury Department representative declined to comment. The IRS did not respond to a request for comment. 'Very damaging' Many schools would find it far harder than Harvard to operate without tax-exempt status, leaving them virtually no choice but to bend to administration demands. 'If they revoked Harvard's tax exemption, that would be damaging to Harvard,' said Mr Adam Stern, co-head of research at Breckinridge Capital Advisors. 'That would be very damaging to schools that have less resources.' Colleges have been quietly acknowledging the growing risk to their tax exemptions. The president of Duke University called out 'threats to our non-profit status' this month in a public update on the school's effort to reduce spending. Emory and Northwestern have mentioned similar risks in their bond documents. 'Certainly, this is a new worry they have to deal with,' said Mr Robert Romashko, a lawyer specialising in taxes for Husch Blackwell LLP. It comes on top of Trump administration attempts to freeze federal funding for some institutions and rein in enrolment by international students. Congress is also considering a steep tax increase for the wealthiest schools' endowments. Without Congress The proposals under review in the Treasury's Office of Tax Policy were drawn up as IRS revenue procedures – a form of guidance for interpreting and enforcing tax laws. If enacted, they would pave the way for the IRS to bar non-profit schools from remaining tax exempt if they favour any racial groups in matters such as financial assistance, loans, use of facilities or other programmes, according to people with knowledge of the deliberations. They could take effect without congressional approval. The proposals would amount to a 'sea change' in the IRS' rules for non-profits, said Philip Hackney, a law professor at the University of Pittsburgh who spent time in the agency's office of the chief counsel. Schools that have helped minority groups narrow historic gaps in wealth and education in the US could end up getting punished for those efforts. 'Charity has long included an idea of remedying discrimination,' he said. 'This would be a monumental change in terms of charitable law. We've built the whole structure on that basis, and the idea of saying all of that stuff was wrong seems incoherent.' Critics split News of the proposals has stirred excitement among some conservative activists encouraging the administration's efforts to end diversity, equity and inclusion programmes in higher eduction. 'The Treasury Department should absolutely enact this policy of stripping tax-exempt status from universities that discriminate on the basis of race,' Mr Christopher Rufo, one of the preeminent voices of that movement, wrote on X. 'No quarter for left-wing racialism in America's institutions.' The American Council of Trustees and Alumni has also criticised universities over Diversity, Equity and Inclusion (DEI) policies and hiring practices that they allege take race and other protected characteristics into account. Still, Mr Alacbay warned that using tax status as a lever could open a 'Pandora's box' with far-ranging consequences as future administrations pursue their own agendas. 'One should be very circumspect about using tax law as a lever to enforce other public policies,' he said. 'There are many other, more established ways to enforce civil rights laws. I would say let those existing enforcement mechanisms play out.' Others welcome the idea of the IRS playing a more active role, which could extend to other controversial topics. 'It's very easy to see how a policy would apply beyond race' to issues like gender and gender identity, said Mr Adam Kissel, a visiting fellow in The Heritage Foundation's Center for Education Policy. While enforcement might veer from administration to administration, he said, that is the reality of a messy democratic process 'in the absence of clear guidance and language from Congress'. 'It's alarming' For the proposal to become established as an enforceable revenue procedure, it would have to work its way through the lengthy requirements of the Administrative Procedure Act, according to Ms Megan Brackney, a tax controversy attorney and partner at Kostelanetz LLP. That includes issuing a formal notice, allowing affected parties to provide feedback, then reviewing and addressing the comments before finalising the revenue procedure. 'It's alarming, but there's a lot that has to happen for this change to be made if they really decide to go through with it,' she said. 'It doesn't mean they can't do it, they just can't do it tomorrow.' The Trump administration has run into this before. In 2018, the IRS wanted to drop rules requiring some non-profits to identify major donors in their tax filings. A federal judge blocked the change, saying the agency had to obey the Administrative Procedure Act before updating the rules. If the IRS' internal guidance is changed, it still needs to follow the law to find the basis to legitimately revoke a school's tax exemption, Mr Hackney said. And despite Mr Trump's views, Congress and judges have not declared DEI efforts broadly illegal or unconstitutional, he said. Charities also lose their tax perks by violating a fundamental public policy. That standard was set in 1983 when the Supreme Court upheld the IRS' authority to revoke Bob Jones University's tax exemption, citing policies banning inter-racial dating on campus. Ms Ellen Aprill, a retired law professor and senior scholar in residence at the University of California at Los Angeles' law school, said it is hard to argue that Mr Trump's stance against DEI constitutes a fundamental public policy. 'The anti-DEI policy from the executive branch is one we've only seen in the months since Trump took office for a second time,' she said. 'Can you imagine the whipsaw if all non-profits had to adapt to the new positions of the executive branch?' It would likely take years for the IRS to ultimately revoke a school's tax benefits through a long, established process including audits and opportunities for remedy, appeals and challenges in court. Meanwhile, Ms Brackney said, the proposal may have an impact on schools, even if it never gains legal teeth. 'It has an effect to wind everybody up and make everybody nervous to change their behaviour, even before the government takes the appropriate action to make it an enforceable rule,' she said. 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‘People didn't like women in space': how Sally Ride made history and paid the price
‘People didn't like women in space': how Sally Ride made history and paid the price

The Guardian

time6 days ago

  • Entertainment
  • The Guardian

‘People didn't like women in space': how Sally Ride made history and paid the price

A week before Sally – a documentary about the first American woman to fly into space – landed at the Sundance film festival in January, Nasa employees received emails informing them how Donald Trump's diversity, equity and inclusion (DEI) rollbacks would take effect. Contracts and offices associated with DEI programs were to be terminated. Staff were given Orwellian instruction to inform the government of any attempt to disguise inclusion efforts in 'coded or imprecise language'. In the weeks to follow, Nasa would take back its promise to send the first woman and person of color to the moon's surface. Meanwhile, employees are reported to be hiding their rainbow flags and any other expressions of solidarity with the LGBTQ+ community, allegedly because they were instructed to do so though Nasa denies those claims. 'The pride flag flew in space a couple years ago,' says Cristina Costantini, the director of Sally, on a Zoom call with the Guardian. 'Now all Nasa employees are being asked to take down any representations of pride.' Costantini calls the developments sad, especially because such harmful silencing contributes to the very atmosphere that made her film's subject hide her own queer identity throughout her celebrated career. Sally Ride, who made history when she rode the space shuttle Challenger into the stars on 18 June 1983, was a lesbian. The public, and so many who knew Ride personally, only found out that part of her legacy after she died of cancer in 2012. Ride's obituary identified Tam O'Shaughnessy as her partner of 27 years. O'Shaughnessy is a key voice in Sally, a National Geographic documentary revisiting everything we thought we knew about Ride – from her astronomic accomplishments to the infuriating sexism she confronted at Nasa and in the media, with reporters questioning how she would dress, whether space travel would affect her ovaries and if she would buckle and cry in the face of daunting challenges. But now there's the extra dimension, the part of Ride kept tragically buried because of the institutionalized homophobia we see resurfacing today. 'We made this movie not thinking it was particularly controversial,' says Costantini. 'We had no idea it would be this relevant.' Costantini is speaking from her Los Angeles office in Atwater Village, a photo of a space shuttle and another of Ride on the Challenger mission hovering just behind her. The investigative reporter turned film-maker – who grew up wanting to be a scientist and made her feature debut co-directing the Sundance audience award winner Science Fair – describes Ride as a major influence on her life. She remembers researching the astronaut as a young child on an old Encarta Encyclopedia CD-Rom for a book report. In grade three, Costantini contributed to a class mural where the students in her Milwaukee school painted their heroes on a wall. Ride is drawn standing alongside Brett Favre and Michael Jordan – a small sampling of the heroes that fed childhood aspirations in the mid-90s, says Costantini. With Sally, Costantini is returning to her icon's story with a canvas bigger than either a book report or mural, but an even more challenging story to tell. 'The film is really two stories interwoven,' says Costantini. 'It's the public and the private Sally. The public Sally is so well-documented that it's a problem. We had to bring in 5,000 reels from the Nasa archive and sort through and sound sync all of them. That was a monumental task. 'And then the other task is the private story, maybe the more interesting story, which has no documentation at all. There are only five really good pictures of [Sally and her partner, Tam] together that we had. You can't build a love story out of showing people the same five pictures over and over again. For that we had to kind of invent our own cinematic romantic language.' Costantini's doc pairs narrations from O'Shaughnessy and others who were close to Ride with animation and 16mm visuals. They express the love, the excitement of first relationships, the heavy toll from keeping these feelings secret and the sting when Ride – whose noted emotional reserve is making more and more sense – would behave inexplicably. 'Sally is a very confusing central subject in some ways,' says Costantini, remarking on how Ride didn't always make for a picture-perfect feminist hero, the uneasiness going a long way to make her even more compelling. The director refers to a story recounted by fellow astronaut Kathryn Sullivan. During the race to become the first American woman to go to space, Ride sabotaged a Nasa exercise Sullivan was working on. Talking heads mull whether that was an example of Ride's prankster sense of humour, or a cutthroat competitive nature that flew in the face of female solidarity and sisterhood. 'She didn't leave tell all diaries or an audio journal of how she was feeling in every single moment. So we're left to interpret later on what her choices were, and why she did what she did.' Costantini also points to Ride's five-year marriage to fellow astronaut Steve Hawley. The union in retrospect can be seen as a betrayal of who she was, and the LGTBQ+ movement that she never publicly aligned with. But it was also a necessary and sacrificial career move to make her dream possible, deflecting any suspicions about sexual orientation while making Ride a more ideal candidate to make history and inspire young women. 'People didn't like women in space,' says Costantini. 'And they especially didn't like single women in space. Some of the male astronauts were, like: 'Well, it was a good look for her not to be single and in space.'' When Ride does climb above the atmosphere on her historic mission, there's a cathartic moment where the tense conflicts within her – or put upon her – are either resolved or abandoned, if only temporarily. 'I loved being weightless,' says Ride, while in space, her recorded words packing new mean considering all the burdens we now understand. 'It's a feeling of freedom.' 'She escaped Earth's orbit – Earth's gravity – metaphorically too,' says Costantini, on that pivotal moment in American history and Ride's personal life. 'Looking at the Earth from space, she started to, for the first time, really think about the imaginary lines that we have. She was struck by the fact that all these countries have known borders around them. These are human constructions. As Tam says in the film, the lines between genders, the lines between race, the lines between countries, who we're allowed to love, those are meaningless constructs. 'Space was transformative for her. When she came back to Earth, she finally allowed herself to be who she really is, and love who she really loved.' Sally premieres on National Geographic on 16 June and is available on Hulu and Disney+ on 17 June

Byron Allen Reaches Settlement With McDonald's In Lawsuit Claiming Racial Bias In Advertising
Byron Allen Reaches Settlement With McDonald's In Lawsuit Claiming Racial Bias In Advertising

Yahoo

time7 days ago

  • Business
  • Yahoo

Byron Allen Reaches Settlement With McDonald's In Lawsuit Claiming Racial Bias In Advertising

Byron Allen's Entertainment Studios and The Weather Group have reached a settlement with McDonald's in a lawsuit over the fast food giant's alleged lack of support for Black-owned media companies. McDonald's defeated the complaint in 2024 in the U.S. District Court for the Central District of California, but Allen appealed. The parties announced the settlement Friday, though no financial details were disclosed. More from Deadline Paramount Says Abrupt Dismissal Of Longtime Media Agencies WPP Media And Horizon Was Driven In Part By Push For "Greater Efficiency" - Update AMC Says New NCM Preshow Ads Don't "Negatively Influence Moviegoing Habits" Tastes Great, Less Filling? Report On Meta Plan For Cheaper, Fully AI-Made Ads Boosts Tech Giant's Stock As Media Agency Shares Slump Under the settlement, McDonald's will still buy ads from ESN, which controls a range of broadcast and streaming properties, 'in a manner that aligns with its advertising strategy and commercial objectives,' a press release said. and ESN will dismiss its lawsuit against McDonald's The fast food company is not admitting any wrongdoing and the press release affirmed that the ads sold will be priced at market value. 'We are pleased that Mr. Allen has come to appreciate McDonald's unwavering commitment to inclusion, and has agreed to refocus his energies on a mutually beneficial commercial arrangement that is consistent with other McDonald's supplier relationships,' McDonald's said in a statement. 'Our company's unique three-legged stool model relies on mutual respect, and we look forward to ESN's contributions to the betterment of our system.' The presumed injection of capital into Allen's companies comes as they face the same pressures hitting all media companies due to cord-cutting and declines in advertising. He recently enlisted Moelis & Co. to explore a sale of his local TV stations. 'We are pleased to find a resolution that maintains our business relationship,' ESN and The Weather Co. said. 'During the course of this litigation, many of our preconceptions have been clarified, and we acknowledge McDonald's commitment to investing in Black-owned media properties and increasing access to opportunity. Our differences are behind us, and we look forward to working together.' Best of Deadline 2025 TV Series Renewals: Photo Gallery 2025 TV Cancellations: Photo Gallery 2025-26 Awards Season Calendar: Dates For Tonys, Emmys, Oscars & More

"Congress saddened when country moves ahead": Kiren Rijiju
"Congress saddened when country moves ahead": Kiren Rijiju

India Gazette

time12-06-2025

  • Business
  • India Gazette

"Congress saddened when country moves ahead": Kiren Rijiju

New Delhi [India], June 12 (ANI): Union Minister Kiren Rijiju on Thursday took a dig at the Congress party saying that he has no cure for the main opposition party, which he alleged plunges into sorrow whenever the country moves ahead. The BJP MP highlighted India's growth in the last 11 years, pointing out that India's exports have risen to USD 800 billion from USD 50 billion. 'In the 11 years, so much work has been done that it's difficult to count the names of the schemes... In all aspects, we are moving towards complete self-reliance, and exports have also increased exponentially and reached more than USD 800 billion. When I was a new minister, we were importing almost everything. Our exports were not even USD 50 billion... If Congress gets saddened when the country is moving ahead, but the people of the country are happy, then I have no cure for them,' the Union Minister told mediapersons. Meanwhile, Union Minister Rijiju said that the Lok Samvardhan Parv is 'an important programme.' 'The skills that we have in the villages - this programme has been initiated with an aim to bring their products into the market, to give them a platform. It will also help the mobility of the products from different states to one another...,' he said. To commemorate the completion of 11 years of the Government with Empowerment, Inclusion, and Cultural Pride, the Ministry of Minority Affairs is organising Lok Samvardhan Parv from June 11- June 15 at the Birsa Munda Lawn, Gandhi Darshan at the Raj Ghat in the national capital. The event is envisioned as a celebration of inclusive development, showcasing the Ministry's key schemes, programmes, and achievements under the vision of Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas. It also highlights the Ministry's continuous efforts towards the economic empowerment of minority communities, especially artisans and traditional craftspeople. According to a statement, this edition of Lok Samvardhan Parv will provide a vibrant platform to over 50 artisans from Northern States of India, enabling them to exhibit and sell traditional crafts, engage with potential buyers, and build market linkages.(ANI)

Katy Perry strips down to a bikini at a Bondi bathhouse she takes a break from her Lifetimes Tour
Katy Perry strips down to a bikini at a Bondi bathhouse she takes a break from her Lifetimes Tour

Daily Mail​

time10-06-2025

  • Entertainment
  • Daily Mail​

Katy Perry strips down to a bikini at a Bondi bathhouse she takes a break from her Lifetimes Tour

Katy Perry is making the most of her time in Sydney. The American popstar, 40, took a well-deserved break from her Lifetimes Tour and a high energy climb of the Sydney Harbour Bridge at one of Bondi's wellness spots Slow House on Sunday. The Firework singer indulged in a 90-minute hot magnesium soak alongside her crew in the studio's luxe communal bathhouse and shared a video of her visit on Instagram. Wearing a simple swimsuit, Katy stood poolside before panning the camera toward her derrière. 'After the bridge climb, slow time,' she teased in the video, clearly revelling in her downtime. From A-list scandals and red carpet mishaps to exclusive pictures and viral moments, subscribe to the DailyMail's new showbiz newsletter to stay in the loop. The Firework singer indulged in a 90-minute hot magnesium soak alongside her crew in the studio's luxe communal bathhouse and shared a video of her visit on Instagram The American star then uploaded a steamy snap from inside the sauna, posing for a post-soak selfie with her dancers. Katy and her team enjoyed a late-night period of rest and relaxation that lasted until nearly 2am, a source tells Daily Mail Australia. On Sunday night, Katy was spotted climbing the Sydney Harbour Bridge during the city's Vivid Sydney festival. At one point, Katy joyfully waved to onlookers below and later held up a small rainbow flag with both hands, grinning as she proudly celebrated diversity and inclusion. Last week she stunned onlookers stunned as she took a very casual shopping trip in Sydney's western suburbs. The Roar hitmaker was seen wandering around Lidcombe Shopping Centre on Tuesday, ahead of kicking off her tour. Katy had daughter Daisy Dove on her hip as she stopped into a series of stores. Katy strolled by the Aldi supermarket and discount department store Kmart with her small entourage. She blended in with the locals in a low key ensemble including a grey Celine tracksuit, cap and sunglasses. The popstar is performing three shows of her Lifetimes Tour in Sydney, bringing all of her iconic hits as well as some of her new tracks from her latest album 143. She will play her next show in Sydney on Tuesday night. Tickets to the pop icon's tour, which has received an onslaught of criticism over the last few months, have been in high demand, with the Roar hitmaker announcing two extra shows on the Australian run to accommodate all of her fans. Taking to Instagram in February, Katy revealed she added an extra show at Sydney's Qudos Bank Arena on June 4 to kick off the Australian leg, as well as an extra Melbourne show at Rod Laver Arena on June 7. The Grammy-nominated superstar revealed she had been humbled with the success of her Australian tour, with all previous dates now sold out. Captioning the announcement, Katy said: 'I am so blown away by the incredible demand for THE LIFETIMES TOUR that I will be adding a final show in Sydney and a final show in Melbourne to make sure all my Australian fans have a chance to experience the incredible show I am bringing.' Katy will now play a hefty 15 Australian shows. She announced the Australian Lifetimes tour just prior to her turn at the AFL Grand Final in September. The original run included just one show each for Sydney, Melbourne, Brisbane and Perth, however fan demand dictated Katy needed to add two extra Sydney and Brisbane shows. Crestfallen Adelaide fans expressed their frustration over missing out on their chance to see Katy in the flesh but they were not left out in the cold for too long. Listening to fan protests, Katy eventually added a run of four shows in the City of Churches. 'I heard you loud and clear Adelaide, I got you!' Katy wrote on Instagram.

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