Weed Sellers Descend on The Capitol with Odd Request
Join us and tell your reps how you feel!
Marijuana business owners have been storming Capitol Hill this week and they’re making what may seem like an odd request: They want to pay taxes like everyone else.
Under federal law, marijuana is still illegal, classified as a schedule 1 narcotic by the FDA, just like heroin. But in 29 states and the District of Colombia, local law determines some form of legal, regulated pot commerce. That puts those states at odds with the federal government -- which bans them from basic services such as using the banking system to accept credit cards, or allowing those businesses to itemize their expenses on their federal tax returns.
“This is an issue of fundamental fairness that legal, licensed, American businesses that are involved in legitimate trade are not allowed to deduct their business expenses. It's fundamentally wrong, it's unfair and it has to change," Rep. Carlos Curbelo (R-FL) said at the Capitol.
"These are the types of businesses that we should be promoting, because they're doing business the right way, under the law, consistent with their states' regulations."
Marijuana sellers have another beef with the U.S. tax code: Section 280E hits their businesses with two and sometimes three times the tax penalty of any other legal business. That’s why they’re pushing the Small Business Tax Equity Act of 2017, which would allow marijuana businesses to get the same deductions as every other business.
The proposals are slowly picking up Republican support, in part because many conservative states have passed laws legalizing either medicinal or recreational marijuana. But now proponents want Republican leaders to bring up the bills, which they say maintain broad support across the ideological spectrum.
For example, Representative Earl Blumenauer, (D-OR) told reporters in the Capitol,
“I’ve never met any human being that thinks there’s any good purpose served by forcing state legal cannabis businesses to operate on an all cash basis. That’s not controversial. Nobody thinks that it’s fair that they can’t deduct their business expenses. That’s not controversial.”
Supporters are also asking Congress to pass the Respect State Marijuana Laws Act of 2017, which would bar the Department of Justice and the DEA from enforcing the federal marijuana prohibition in states that have legalized pot.
Do you think federal law should allow states to determine marijuana policy? Should these businesses be allowed the tax expensing that others have? Hit the Take Action button and tell your Reps!
-- Matt Laslo
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