Tuesday, April 30, 2013

CCA Private Prison Stealing Tax $$ - Not Once, But Twice

Fool me once - shame on you
Fool me twice - Shame on Me

CCA - Stealing US taxdollars - not once - but TWICE
Shame on US.

To save millions in money they would have to pay to taxes, the CCA is now claiming to be a "Real Estate Investment Trust."
April 26, 2013  | 

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.To save millions, however, requires no changes to business as usual for the CCA. The chief executive of the Corrections Corporation, Damon T. Hininger, told investors in February that the new arrangement should help the CCA achieve its goal of “housing more and more population for federal, state and local levels as they grow or deal with overcrowding.”

Private prison corporations, however, are not the only businesses cashing in on what the New York Times called “new corporate clothes.”

“I’ve been in this business for 30 years, and I’ve never seen the interest in REIT conversions as high as it is today,” Robert O’Brien, the head of the real estate practice at Deloitte & Touche, told the New York Times. Penn National Gaming, a company that runs dozens of casinos, for example, has also received approval for the change.

But while the tax-saving trend has been taking off in corporate America, the NYT questions whether allowing corporations to make this kind of change is ethical.
Not a Chance!
Why do they do it?

Some links you may want to peruse in reference to this story

Fool me once - shame on you
Fool me twice - Shame on Me

CCA - Stealing US tax dollars - not once - but TWICE
Shame on US.

Corporate members of the American Legislative Exchange Council using their ALEC membership to steal tax dollars by manipulating state legislation and state policies.


May 13, 4pm: PROTEST Corrections Corporation of America!!!!
This year, Corrections Corporation of America (CCA) is celebrating 30 years of profiting from incarceration. People around the country say, 30 years of abuse, mismanagement, and political influence peddling is nothing to celebrate. It’s time for the people of Arizona to say: 30 years is enough. CCA, go away! Please join the American Friends Service Committee for a demonstration and press conference to protest CCA’s prison profiteering in Arizona. Monday May 13, 4-5pm at the Evo DeConcini Courthouse, Tucson.


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