You're missing one of the main problems: this creates a perverse profit incentive which, as the article points out, inevitably permeated down from major rackete

You're missing one of the main problems: this creates a perverse profit incentive which, as the article points out, inevitably permeated down from major racketeers to ordinary citizens. If anything, the confiscated property should be turned over for neutral causes such as financing education or healthcare etc. Not that I agree with that either, but it removes the existing incentives for corrupt authorities.