U.S. Senator Ron Wyden (D-OR) and Congressman Earl Blumenauer (D-OR 3rd District) have announced a bill that would lessen the tax burden on marijuana businesses who are operating in compliance with state law.
Current federal tax law dictates that businesses dealing with Schedule 1 substances under the Controlled Substances Act cannot write off business expenses on their federal tax bill. Because of this, marijuana businesses often face tax rates as high as 90 percent. The proposed Small Business Tax Equity Act would allow business owners of the cannabis industry to take the federal tax reductions they are currently denied.
Congressman Blumenauer explains that the change “would bring much needed fairness and level the playing field for small businesses that follow state laws and create jobs.”
“More than two-thirds of Americans now live in jurisdictions that have legalized either the medical or adult use of marijuana,” he said. “It’s time for the federal government to catch up.”
Photo Credit: Carlos Gracia