Taxation of Cannabis Impedes Growth
The cannabis industry is a bit of like the wild west, and so was the technology industry. The most significant difference is that the technology industry was not taxed like the cannabis industry. Just a reminder, the narrative around cannabis is utter bullshit and should have never been used as an opportunity to jail those who partake. And because of that, we have to pay retributions to countless people and have lost decades of research on the medical benefits of this plant.
The cannabis industry is booming. Are there people who jumped in just because they saw an opportunity? Of course, but so did countless in the tech world. The first generation of tech was filled with opportunists. That’s life.
Why the Federal Government continues to abuse cannabis regulation by taxing an industry that will make a tremendous economic impact on our country is absurd. What I am talking about is section 280E of the federal tax code. This came to be in the ’80s with a court ruling because, supposedly, cocaine dealers could deduct their operating expenses. Really? How many cocaine dealers were actually paying their taxes?
All businesses can write off their expenses, salaries, and benefits to operate profitably. Without that, businesses pay up to 70% in taxes. The government is taking its cut of this new bourgeoning industry. How can an industry grow and build when it is not treated like every other business?
Anyone who says it is too early in the game to be profitable and that you have to wait it out is obviously not in business. This is a retail game, pure and simple, with medical benefits and a lifestyle. The tax person should be treating it as such. Sales could top $70 billion by 2030. Why should the government be the only cash beneficiaries when they aren’t on the ground attempting to build a business?