Private prisons and corrections-based organizations are securing millions of dollars in tax breaks, according to Mike Ludwig, reporter for Truthout.
The Corrections Corporation of America (CCA) and the GEO Group, two of the largest private prison organizations, had their federal financial filings analyzed by Enlace, an economic justice group.
The findings rendered statements that show the savings of the two organizations culminated with a $113 million federal tax break in 2015.
CCA and GEO reported a net profit last year of $222 million and $139 million respectively.
Both organizations converted themselves into real estate investment trusts, allowing the companies to qualify for corporate federal tax exemptions. Aside from its $222 million net profit in 2015, CCA owner of 66 jails and prisons, has incurred approximately $138 million in tax benefits in prior years.
In the Public Interest (ITPI), a watchdog organization, reported a disparity in prison wages. Officers of public institutions earn an average of $41,000 as opposed to the $26,091 in private facilities.
GEO Group CEO George Zoley earned $1 million salary in 2015, plus $5.6 million in bonuses and benefits such as his stock rewards, according to ITPI. Similarly, CCA CEO Damon Hininger had a salary of $882,807 with $2.5 million in various forms of remuneration, according to ITPI.
The executive director for In the Public Interest, Donald Cohen said, “Paying private prison companies massive profits diverts resources from programs and training that would help both prisoners and correctional officers.”
Cohen commented that incarceration profiteering provides a platform for the acceptance of poor services and living conditions. This happens due to minimizing expenditures for supplies, food and medical care.
In fact, ImmigrantJustice.org released information highlighting a high number of medical malpractice suits as well as deaths occurring in private jails and prisons.