The Corrections Corporation of America’s Latest Shady Business? Tax Evasion | Alternet
Earlier this year, the Corrections Corporation of America offered to take over state-run prisons, provided that they remain 90% stocked full of inmates ready for cheap labor. Now, the CCA — which runs 44 private prisons and detention centers across America — is gearing up to avoid paying taxes by claiming to be a real estate investment trust (REIT). The CCA is using the new trend in corporate maneuvering to basically claim that money its collects from the government to hold prisoners is just cash for rent.
The Internal Revenue Service has quietly approved the change, and the shady move is expected to save the CCA $70 million in tax dollars in 2013.
Oh, my goodness, my goodness. The predatory prison industrial complex is already picking taxpayers pockets down to the very last bit’o’lint … a $70M giveaway is just too, too tacky.
While Alternet struggles to set the record straight, The Advocate allows Representative Charles Boustany (who reportedly chaired the annual hearing of the Internal Revenue Service’s operations and expenses before the House Ways and Means Oversight Subcommittee) to whine, “The truth is that Obamacare is pulling the IRS away from its core mission.”
The IRS’s “core mission,” from what I’ve observed in pressuring them to get them to yank exemptions for not-really-exempt organizations, is a ruthless ongoing reverse Robin Hood act … rob from the poor to give to the rich.
Were I wrong, there’d certainly be no REIT designation for CCA.
$70M in tax revenues negotiated was away surreptitiously and ignobly, and the rest of the story is untold … who gained what for the IRS’ fraud on the public? And do we really want the IRS to get away with it?