There are many U.S. states that have legalized marijuana in some form or fashion, whether medical or recreational marijuana still remains illegal under federal law, and as a result honest men and women are being subject to insane tax rates. Dispensaries do not have the ability to deduct things such as advertising costs, employee payroll, rent and health insurance from their combined taxes. This means dispensary owners face rates of 50 percent and in some states rates can soar even higher.
In other words, the federal government is receiving tax revenue from federally illegal pot prohibiting dispensary owners from accessing the same financial benefits as other businesses. The Federal tax code 280E states, "No deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of schedule I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any State in which such trade or business is conducted." President Ronald Reagan’s “War on Drugs” campaign, directly prohibits any deductions of trafficking any controlled substances. Marijuana is currently listed alongside heroin and LSD as a Schedule I narcotic under the Controlled Substances Act.There is no reason why the tax code should deny ordinary and necessary business expenses to legitimate businesses established under state law.
Colorado’s recreational pot dispensaries alone have generated a tremendous amount of revenue for both the state and federal governments. Since most banks refuse to work with marijuana businesses out of fear of money laundering many owners have to conduct all of their transactions in cash. Beyond the many burden some troubles with a cash-only business you have safety risk with cash only. Do we have a long way to go in this revolutionary wave platforms like Steemit give us a voice to show the beauty of the plant and the struggles we pot lovers face. I stand by the plant 100 percent and wish all my readers peace, joy, and much success in the Steemit Family
Thanks for Reading,
Kyle Walder