Harvard and Asian Americans

The current trial regarding Harvard's admissions policies seem to clearly indicate that they discriminate against Asian Americans. I had always assumed this to be the case. My take is that the problem is not so much that Harvard is non-transparent and unfair in how it selects students but rather that Harvard and the other top universities have too much influence on the rest of society. Each justice on the US Supreme Court has a degree from either Harvard or Yale. That is positively feudalistic. So here is my solution. All universities have a choice. They can 1) choose students any way they wish but they lose their tax free status or 2) retain tax exempt status but then adhere to strict non-discrimination and affirmative action rules. The top schools already have massive endowments and hurt the locales they are in by buying property and then not pay property taxes. I say let them do what they want but tax them heavily for the right to do so. The government should also not subsidize loans for students that attend such schools.