Private prison investors set for giant windfall from Trump tax bill

[Eugene]

Source: The Guardian

Private prison investors set for giant windfall from Trump tax bill

Prison firms that restructured as real estate investment trusts see substantial tax cut – more good news for those who benefit from increased incarceration

Jamiles Lartey in New York
Thu 28 Dec ‘17 12.00 GMT

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.

“It’s 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.

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Read more: https://www.theguardian.com/us-news/2017/dec/28/private-prisons-investors-trump-tax-bill

[appalachiablue]

1. Kick for exposure. So on it goes