The Marijuana Industry Paid an Extra $1.8 Billion in Federal Taxes Because of the 280E Tax Code

[KLAW Blog]

News from the internet

Why legalize cannabis when 280E is the gift that keeps on giving to the Federal government?

Whitney Economics, a cannabis research firm, recently conducted a comprehensive analysis of the impact of federal taxes on the cannabis industry. The findings revealed that in 2022, cannabis operators incurred an astonishing $1.8 billion in additional taxes compared to conventional businesses. Looking ahead, it is projected that this excess burden will rise even further to reach $2.1 billion in 2023.

The Reason Behind The Higher Tax Burden for Cannabis Operators

Despite the growing number of states that have legalized medicinal or adult-use cannabis operations, cannabis’ classification as a Schedule I controlled substance under the Controlled Substances Act (CSA) remains unchanged.

Under this classification, cannabis businesses that operate per state law are deemed criminal enterprises engaged in the trafficking of a controlled substance under federal law. This label treats law-abiding business owners and operators as drug dealers peddling substances as harmful as cocaine and heroin. As such, these businesses are subjected to Section 280E.

Section 280E is a provision that punishes those involved in the trafficking of Schedule I or II drugs by prohibiting the deduction of “ordinary and necessary” business expenses. This includes below-the-line deductions, even after reducing gross receipts by the cost of goods sold (COGS). This results in federal income tax liability being calculated based on gross income rather than net income.

Read the rest of the article here

If you or someone you know has been accused of a crime or DUI.
Call Komorn Law and turn the odds in your favor.
Call Now 248-357-2550

Komorn Law Social Media

• Facebook
• Twitter
• Instagram
• LinkedIn
• YouTube

Recent Posts

• 
  US Cannabis Industry-Just Another Sinking Ship?
• 
  Marijuana, Mushrooms, a Gun and a Bad Search – Case Dismissed
• 
  CRA News Releases January 2023 thru May 2023
• 
  The Marijuana Industry Paid an Extra $1.8 Billion in Federal Taxes Because of the 280E Tax Code
• 
  DUI in Michigan
• 
  Conducting Criminal Enterprise Charges (CCE)

Tag Cloud

Academia Blog Cannabis Science Criminal Defense Criminal Defense Attorney Michael Komorn Federal Laws Forfeiture Health Benefits of Marijuana Hemp Komorn Law Blog Komorn Law In The News LARA-MMFLA Info Legalization Marijuana Criminal Defense Attorney Michael Komorn Marijuana Regulatory Agency Medical Marijuana Medical Marijuana Attorney Michael Komorn Michigan Laws Michigan Medical Marhuana Regulation Michigan Medical Marijuana Act Michigan Medical Marijuana Association Michigan Medical Marijuana Criminal Defense Michigan Medical Marijuana Criminal Defense Attorney Michael Komorn News Planet Green Trees Radio Recent Victories Record Expungement Services Uncategorized Victories Project

DISCLAIMER
This website and/or post may contain re-posted content, opinions, comments, ads, third party posts, outdated information, posts from disgruntled persons, posts from those with agendas, private stuff, work related information, non work related information and general internet BS. Therefore…Before you believe anything on the internet regarding anything and everything – do your research on “Official Government and State Sites”, Call the Michigan State Police, Check the State Attorney General Website and Consult an Attorney – Use Your Brain. You’re on the internet.

The post The Marijuana Industry Paid an Extra $1.8 Billion in Federal Taxes Because of the 280E Tax Code appeared first on Komorn Law.

View the full article