The new GOP tax plan slashes the taxes on real estate investment trusts (REITS) by a quarter, dropping the rate from 39.6% down to 29.6% -- a move that will put tens of millions of dollars in the pockets of investors in America's notorious private prisons.
Companies like Corecivic (formerly Corrections Corporation of America/CCA) and Geo Group are structured as REITS, a tax-dodge that has already made the companies millions -- Corecivic was able to lower its effective tax rate from 36% to 3% by restructuring as a REIT, and now that rate is going down by 25%.
The Trump administration reversed the Obama ban on the use of private prison contractors, and has also stepped up the use of private prisons to detain migrants awaiting immigration hearings.
Oregon Democratic senator Ron Wyden, a ranking member on the finance committee, has called the use of the reit structure by prisons “unfair” and “unjust”. In 2016, after being pressed by Enlace, he introduced legislation to end such practices. The bill was reintroduced this year but it has yet to make it out of committee and is not likely to do so any time soon.
A CoreCivic representative told the Guardian that, in their view, “there are far more pressing matters for Congress to pursue” than the reit tax classifications. The Geo Group added they are “treated exactly the same as other real estate investment trusts without any special tax treatments or loopholes.” The point that activists make, though, is that treating prisons as real estate is a loophole.
Private prison investors set for giant windfall from Trump tax bill [Jamiles Lartey/The Guardian]
(Image: William Warby, CC-BY)
(via Late Stage Capitalism)
For a generation, big box stores have swept across America, using predatory pricing and other dirty tricks to kill the independent retail sector; they used their corporate lobbying muscle to tempt cities and towns into handing out massive corporate welfare checks to lure them to town, and now, with the help of hustling contingency lawyers, […]
Here's my reading (MP3) of Zuck's Empire of Oily Rags, a Locus Magazine column about the corruption implicit in surveillance capitalism, which creates giant risks to users by collecting sensitive information about them in order to eke out tiny gains in the efficacy of targeted advertising. The commercial surveillance industry may not be very good […]
With Trump poised to exact high tariffs on goods from China, it's tempting to declare the gadget party over: everyone is going to pay through the nose for electronics, from makers to Apple, and that's the end of the story, right?
When it comes to tech, smaller is better, and these items fit the bill both in terms of size and price. We’ve rounded up our favorite stocking-ready gadgets, most of which are already on sale – and you can take an additional 15% off any of them with the special code MERRY15. iPM 3-in-1 Fast […]
So you’ve got a good eye for pictures? We’ve got a good eye for deals. And this holiday, there are some solid deals out there for photographers. Check out some of our favorite recent discounts on gear, software, and e-learning for photogs of any experience. Gadgets RevolCam: The Multi-Lens Photo Revolution for Smartphones This […]
Take a scroll through any app marketplace and you’ll see that the doors are wide open for any game these days – and any game developer. Like any creation, virtual or analog, it all starts with an idea. And if you’ve got one of those, the Complete Unity Game Developer Bundle can walk you the […]