Except that REIT's, unlike other corporations, pay no income taxes themselves! 100% of their income tax liability flows through to shareholders in the REIT. This was done by congress so  smaller investors could own real estate assets, which traditionally were owned exclusively by the very wealthy. The problem is after decades, reits have not shown this to be the result. Instead they have not democratized real estate ownership, quite the opposite. The result is the slow motion hollowing out of our tax base. There should have been people protesting in the streets when Alexander and Baldwin coverted earlier this year! Btw, most corporations (except pass throughs) are currently subject to double taxation. This is why we need tax reform. Until then, there should not be special groups like reits that are exempt from it.