Private prison investors set for giant windfall from Trump tax bill. (The Guardian, 12/28/2017)
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.Why For-Profit Prisons House More Inmates Of Color. (NPR, 3/13/2014)
In the nine states Petrella examined, private facilities housed higher percentages of people of color than public facilities did. Looking back at the contracts the private companies signed with the states, Petrella figured out the reason behind the racial disparity: private prisons deliberately exclude people with high medical care costs from their contracts.
Younger, healthier inmates, he found — who've come into the system since the war on drugs went into effect — are disproportionately people of color. Older inmates, who generally come with a slew of health problems, skew more white.