Dude, where’s my tax deduction?

That’s the question the burgeoning marijuana industry has for the federal government. Tax law bars the businesses from deducting expenses related to the distribution of their product — even if they’re operating legally under state law.

Pot shops are banned from writing off labor, rent, health insurance, advertising costs or other expenses that most companies deduct to lower their tax bills. The result is a tax rate as high as 80 percent, according to the industry, for those in the 20 states with legal medical marijuana and the two states with recreational pot.

The situation has become a buzz kill for businesses where the marijuana industry is booming.

Read more: Puff, puff: Pass the tax break | Politico