Move over Arithmetic. The age of modern math is upon us.
As our readers know, REITs don’t owe federal taxes. They must prove to Tax chacha that their main business is in real estate.they also have tonpay out at least 90% of taxable income as dividends.
Investors have been flocking into REITs due to their 4% yld. And companies that are not REITs are racing to convert into REITs. One of them is Corrections Corp. Of America a private operator of prisons!
So now running prisons is a for profit operation. AND the operator does not pay federal taxes.
I respectfully disagree. This is not about business. This is about unintended consequences for PRIVATIZATION of the prison operation. Which certainly belongs in All Views due to its societal impact.
What impact does a profit making prison have on society?
If prison operation is made solely to increase bottom line, there is an incentive to throw more persons in prison. There was a well documented judge in Pennsylvania who threw juveniles in juvenile detention centers for trivial stuff as arguing with teachers or missing a day or two. The center he threw them. In Was privately operated. And the judge had financial stake in it.
Thank u for the question and the opportunity to address ur concerns.
How is the judicial system linked with this prison corp?
I don't see how the ''incentive'' would materialize on a material level.
Your questions are cuitanly valid - in theory. I gave you an example of a judge who had financial incentive to send juveniles to a detention center. One can connect the dots. Lawmakers and judges may have financial ties with private prison operators. Lobbying I am sure is something you are familiar with. Lobbyists for the most part get what they want. Prison operator ' s lobby could influence Congress into passing laws that make it tougher on non violent criminals. 3 strikes laws is one example of a draconian law.