City Prison Divestment
No Tax Breaks for Private Prisons
For-Profit Prison Industry leaders, the GEO Group and Corrections Corporation of America (CCA) together with the Million Shares Club (major investors owning over one million shares combined of CCA and GEO stock) are largely responsible for racist laws that target people of color and immigrants for incarceration, and expand the police state in poor communities.
In 2013, GEO and CCA received Real Estate Investment Trust (REIT) status, which creates a loophole for them and their investors to make billions in profit from incarcerating people of color and immigrants TAX FREE! In the first year of their REIT status, CCA paid no taxes when they earned a $71 million tax break even as their profits soared over 2012 levels. Meanwhile, GEO received a $26 million tax rebate.
The Joint Committee on Taxation has the power to revoke Private Prisons' REIT Status.
Dear Members of the Joint Tax Committee,
Recently Private Prisons were granted REIT status. Not only has REIT status increased profits for these companies, but it is attracting other investors to participate in profiting from the caging of bodies of color. REIT status enables this private industry to manipulate laws and politicians to advance a racist agenda. REIT status incentivizes private lobbying for policies like the detention bed mandate, and sentencing policies that place more people for longer in for-profit immigrant detention centers, state prisons, and criminal alien requirement prisons. Our Democracy is under attack when private interests can buy laws and votes to increase their power and wealth.
We demand that the Joint Tax Committee immediately revoke REIT Status for Private Prisons.