A Law Designed to Target Coke Lords Is Screwing Over Legal Pot Companies
Voters in Oregon, Alaska, and Washington, D.C. headed to the polls Tuesday to decide whether to legalize sales of recreational marijuana.
But would-be weed entrepreneurs in the states might be disappointed to learn that a federal tax law designed to target coke lords in the ’80s is eating into the profits of legal pot merchants across the country.
“This is one of the most critical issues facing the industry today because it directly affects the bottom line of anyone who cultivates or sells medical or recreational marijuana,” said Taylor West, deputy director of the National Cannabis Industry Association, an association of more than 750 cannabis-related businesses across the United States. “It results in businesses paying effective tax rates of 70 to 85 percent when they should be only paying 30 or 40 percent.