Some Weed Shops Face 93 Percent Tax Rates | The Wire


As more states legalize recreational and medical marijuana (with President Obama’s tacit approval), the tension between federal and state law is getting worse. Legal pot businesses have been forced to deal almost entirely in cash because banks are afraid to take their money. And now dispensaries aren’t even sure how to file their taxes. Normally, business get federal tax breaks on expenses, but that’s not the case here. Pot shops have estimated tax rates anywhere from 60 to 93 percent.

A few members of Congress have tried to get together to fix the problem, but it’s a contentious issue that doesn’t have widespread support on either side of the aisle. Most Republicans are all for tax breaks, but many oppose marijuana legalization. A lot of Democrats support legalization, but some aren’t as sympathetic to business owners. Republican Rep. Tim Griffin, who sits on the House Ways and Means Committee, tells Politico, “Why would we allow companies operating in violation of federal law to take federal tax breaks? It makes no sense.” Democratic Rep. Earl Blumenauer has sponsored a bill to change the tax code so that weed shops can write off expenses, but only 12 members have co-sponsored it. Grover Norquist, at least, is sympathetic to pot shop owners.

Read more: Some Weed Shops Face 93 Percent Tax Rates | The Wire

Puff, puff: Pass the tax break | Politico

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