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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsPrivate prison investors set for giant windfall from Trump tax bill
Individual investors in US private prisons are poised to collect their most lucrative earnings ever thanks to changes in the tax code signed by Donald Trump, continuing what has been a banner year for the industry since the 2016 election.
Its going to be great for the investors, banks and hedge funds that own shares in private prisons, and are dependent on increased incarceration and criminalization, said Jamie Trinkle, campaign and research coordinator with the racial and economic justice coalition Enlace.
Under the new GOP law, investments in so-called real estate investment trusts (reits) will see a 25% reduction in tax, from 39.6% down to 29.6%.
Corecivic, formerly Corrections Corporation of America (CCA), and the Geo Group, which together own more than 80% of private prison beds in the US, both restructured as reits in 2013 after a private letter ruling by the Obama Administration IRS green-lit the change.
This tax act is of unprecedented benefit for reit investors, said David Miller, a tax partner at Proskauer Rose. I think reits will explode in popularity as a result of this act.
With dividends of more than $430m paid out by the two major private prison companies in 2017, in theory, prison investors could see an additional $50m in dividend earnings next year, thanks to the GOP legislation. The actual figure will be lower than that, however, as some proportion of those shares are owned by institutional investors which are taxed differently from individuals. The exact breakdown between the two is not available in public filings.
https://www.theguardian.com/us-news/2017/dec/28/private-prisons-investors-trump-tax-bill
I don't know what anyone else thinks, but having my health care, social security, and medicare under assault, because of this tax scam................................
rusty quoin
(6,133 posts)is that they can create anything, and this doofus is so happy to sign it because he gets to sign it in his really big signature. He is myopic. His world is his name.
MarcA
(2,195 posts)they need to be here to receive their last dividends.
ProudLib72
(17,984 posts)Commute all sentences related to drug use and sales.
I'm thinking that would put a major, major dent in private prisons and piss off sessions to no end.
Then convict tRump and his cabal of treasonous traitors. Seize all their assets. Send them to the private prisons, and use their seized assets to pay those prisons.