With tax deadlines due today many individuals who work as licensed cannabis growers and dispensary owners in the marijuana industry are in conflict with the lack of deductions they are currently seeing.This is a law that workers of the marijuana industry want to change states that it is targeting the marijuana industry and that it gets more outdated as the increase of states move to legalize cannabis.
“We don’t want special favors – we just want to be treated like businesspeople,” stated Nick Cihlar.
The restriction on tax deductions that is done by the Internal Revenue Service is set in position due to one discrepancy: Congress has asserted marijuana related transactions as a felony offense; therefore negating eligibility for federal deductions.
The obstacle will be getting the law amended with people who oppose giving tax deductions to dispensary owners and licensed growers stating that it is a big mistake.“Like any special interest group, they’re after one thing: more money. . . . It’s particularly audacious to demand that the government allow you to deduct expenses when you’re breaking federal law,” stated Kevin Sabet, President of the anti-legalization group Smart Approaches to Marijuana.
Dear Franklin, President of the Washington Association for Substance Abuse and Violence Prevention, stated that allowing tax deductions to cannabis related businesses would only lower the cost of the drug, and in theory making it much simpler to obtain. The concept “doesn’t make sense from a public health perspective,” and marijuana businesses should have to contribute more money to deter minors from using marijuana, he stated.
Though many cannabis shop owners are stating, that tax inflation makes it difficult to enter the world of legal marijuana while still competing with underground drug dealers. “If someone spends $100 in our store, $77 of it is going to some form of tax – that’s federal, state, sales, whatever,” stated Tim Thompson, co-owner of a pot shop called Altitude in Prosser, Wash. “There’s a lot of people staying out of the recreational market because the black market is cheaper, and the reason is because of these taxes and lack of write-offs.”
Thompson has stated that April 15 means “pain, a whole lot of pain.”
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