Although many on the left have rightly repudiated the myriad manifestations of prison privatization characterized, in part, by involuntary prison labor, ongoing health and safety violations, corporate financing and even "the New Jim Crow," few, if any, have called attention to the relatively obscure relationship between private prison companies and their IRS corporate classification filing status. … Less than a month ago, the nation's largest private prison owner and operator, Corrections Corporation of America (CCA), first announced its plan to assess the feasibility of a Real Estate Investment Trust (REIT) conversion. …. CCA bills its potential conversion into a REIT as a way to "increase long-term shareholder value," but it will also allow the company to 1) reduce its federal corporate tax liability to zero. and 2) "leverage" (nonexistent) revenue to create the illusion of "more cash on hand."
How America's Largest Private Prison Operator Plans to Beat Corporate Income Tax
Thursday, June 7, 2012
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