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Sen. Ron Wyden (D-Ore.) at a town hall in Multnomah County, Oregon on Feb 25, 2017. (Photo: Joe Frazier, Flickr)
Wyden Bill to Strip Tax Breaks From Private Prison Industry Profiting From Child Detentions
"Companies that profit off of putting children in cages shouldn't get tax breaks."
Jun 13, 2019
President Donald Trump's administration continues to detain migrants at the southern border in conditions that one expert believes approximate concentration camps, but those that profit off of migrant detentions may find the spigot of government cash isn't a renewable resource.
A bill proposed by Sen. Ron Wyden (D-Ore.) on Thursday would strip private prisons of the ability to be considered real estate investment trusts (REITs). REITs allow for a special tax exemption that sees companies taxed at the individual rather than corporate level--or at the point of dividend payments for shareholders, but not at the point of profits for the companies.
In a statement, Wyden explained why he believed the move was necessary, citing the moral imperative of the moment.
"The private prison industry is booming, particularly with the Trump administration holding more immigrants in detention than any time over nearly the past 20 years," said Wyden. "Companies that profit off of putting children in cages shouldn't get tax breaks."
Bianca Tylek, the executive director of criminal justice reform group Worth Rises, told Common Dreams that her organization was "really excited" to see Wyden's bill.
"For years, private prison companies like CoreCivic have been getting away with paying as little as 4 percent in federal taxes due to their REIT structure," said Tylek. "How these companies make and hoard their money is appalling."
As Common Dreams reported on May 31, conditions in migrant detention centers have gone from bad to worse in recent months, in one case overcrowding a facility meant for 125 people with over 700 detainees.
"My proposal is simple," said Wyden. "Companies that make money from the Trump administration's inhumane immigration policy and a criminal justice system that disproportionately imprisons people of color are going to pay taxes like any other corporation."
In a statement, Wanda Bertram, communications director for the Prison Policy Initiative, said while Wyden's bill was a step in the right direction, there's more work to be done.
"Eliminating rewards for private companies in the prison business is the right thing to do, but it unfortunately won't end mass incarceration or the caging of children," said Bertram. "What we need is radical criminal justice and immigration reform."
We are at a crossroads
This country and this world are at a monumental crossroads. US voters have an opportunity to beat back the forces of fascism and confront the billionaires who are rigging the economy, our media system, and our democracy, making it increasingly impossible for ordinary people to get by. We’re not just talking about the election. We’re talking about what must be done once these fascist elements are vanquished from power. We need a bolder set of solutions than what either major party has so far been willing to offer and a working-class movement ready to fight like hell for it. Trump didn't emerge from nowhere. The conditions that fueled MAGA authoritarianism were created by decades of radical neoliberal economic policies and a corrupt political system dominated by corporate interests. They slashed taxes on the super-rich, promising that the benefits would trickle down. They said giveaways to the corporate titans would make life more affordable for the rest of us. It was all bullshit. And when a bitter, betrayed populace searches for someone to blame, right-wing demagogues have little trouble finding scapegoats. People know when they're being lied to, but you won't hear any of this from the corporate media. Only independent journalism—powered and funded by people who believe in building a better world—can deliver truly trustworthy daily news. If you share our vision, please contribute whatever you can to sustain our work. |
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President Donald Trump's administration continues to detain migrants at the southern border in conditions that one expert believes approximate concentration camps, but those that profit off of migrant detentions may find the spigot of government cash isn't a renewable resource.
A bill proposed by Sen. Ron Wyden (D-Ore.) on Thursday would strip private prisons of the ability to be considered real estate investment trusts (REITs). REITs allow for a special tax exemption that sees companies taxed at the individual rather than corporate level--or at the point of dividend payments for shareholders, but not at the point of profits for the companies.
In a statement, Wyden explained why he believed the move was necessary, citing the moral imperative of the moment.
"The private prison industry is booming, particularly with the Trump administration holding more immigrants in detention than any time over nearly the past 20 years," said Wyden. "Companies that profit off of putting children in cages shouldn't get tax breaks."
Bianca Tylek, the executive director of criminal justice reform group Worth Rises, told Common Dreams that her organization was "really excited" to see Wyden's bill.
"For years, private prison companies like CoreCivic have been getting away with paying as little as 4 percent in federal taxes due to their REIT structure," said Tylek. "How these companies make and hoard their money is appalling."
As Common Dreams reported on May 31, conditions in migrant detention centers have gone from bad to worse in recent months, in one case overcrowding a facility meant for 125 people with over 700 detainees.
"My proposal is simple," said Wyden. "Companies that make money from the Trump administration's inhumane immigration policy and a criminal justice system that disproportionately imprisons people of color are going to pay taxes like any other corporation."
In a statement, Wanda Bertram, communications director for the Prison Policy Initiative, said while Wyden's bill was a step in the right direction, there's more work to be done.
"Eliminating rewards for private companies in the prison business is the right thing to do, but it unfortunately won't end mass incarceration or the caging of children," said Bertram. "What we need is radical criminal justice and immigration reform."
President Donald Trump's administration continues to detain migrants at the southern border in conditions that one expert believes approximate concentration camps, but those that profit off of migrant detentions may find the spigot of government cash isn't a renewable resource.
A bill proposed by Sen. Ron Wyden (D-Ore.) on Thursday would strip private prisons of the ability to be considered real estate investment trusts (REITs). REITs allow for a special tax exemption that sees companies taxed at the individual rather than corporate level--or at the point of dividend payments for shareholders, but not at the point of profits for the companies.
In a statement, Wyden explained why he believed the move was necessary, citing the moral imperative of the moment.
"The private prison industry is booming, particularly with the Trump administration holding more immigrants in detention than any time over nearly the past 20 years," said Wyden. "Companies that profit off of putting children in cages shouldn't get tax breaks."
Bianca Tylek, the executive director of criminal justice reform group Worth Rises, told Common Dreams that her organization was "really excited" to see Wyden's bill.
"For years, private prison companies like CoreCivic have been getting away with paying as little as 4 percent in federal taxes due to their REIT structure," said Tylek. "How these companies make and hoard their money is appalling."
As Common Dreams reported on May 31, conditions in migrant detention centers have gone from bad to worse in recent months, in one case overcrowding a facility meant for 125 people with over 700 detainees.
"My proposal is simple," said Wyden. "Companies that make money from the Trump administration's inhumane immigration policy and a criminal justice system that disproportionately imprisons people of color are going to pay taxes like any other corporation."
In a statement, Wanda Bertram, communications director for the Prison Policy Initiative, said while Wyden's bill was a step in the right direction, there's more work to be done.
"Eliminating rewards for private companies in the prison business is the right thing to do, but it unfortunately won't end mass incarceration or the caging of children," said Bertram. "What we need is radical criminal justice and immigration reform."
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