Two Republican Senators want to make sure that if the cannabis rescheduling plan is successful, one of the core benefits will be rendered redundant.
Apart from the possibility of interstate trading and the official acknowledgment of the medical benefits of cannabis, business owners across the US look forward to the tax advantages that come with the rescheduling.
Section 280E (of the federal tax code) currently prevents cannabis companies from deducting normal business expenses. This results in a significantly higher tax rate for marijuana businesses than any other industry.
The figures from Whitney Economics Some estimates suggest that US cannabis businesses pay an additional $2bn in tax each year due to 280E, which includes millions of dollars from some of their largest firms.
The new bill proposed by Senators James Lankford & Pete Ricketts will extend indefinitely this tax burden even if Cannabis is put on Schedule III.
Under the proposed legislation, any company involved in ‘trafficking marijuana’ would remain subject to 280E, unless cannabis is completely descheduled—a scenario that remains politically improbable in the near future.
Lankford, who has been a cannabis critic for a very long time, presented his bill in a way that would prevent the legalization of this industry.
“Marijuana doesn’t make our families stronger, our streets safer, or our workplaces more productive,” he stated, adding, “Businesses that sell federally illegal drugs—including marijuana businesses—shouldn’t get federal tax breaks.”
Smart Approaches to Marijuana has strongly supported the initiative. SAM is a pro-prohibitionist group, which has already been a hindrance to this process.
SAM President Kevin Sabet hailed the bill as a way to prevent what he called $2.3 billion in ‘tax cuts’ for the cannabis industry, stating that ‘the federal government should not be in the business of giving tax relief to the federally illegal, addiction-for-profit marijuana industry.’
Bill has been criticized by cannabis industry activists who claim that the bill will benefit illicit cannabis markets only, as it makes legal cannabis less attractive.
Experts have suggested, in addition to the criticism, that the chances of this bill becoming law are slim, as senators from all political parties support cannabis reform.
Two Republican Senators want to make sure that if the cannabis rescheduling plan is a success, one of the core benefits will be rendered redundant.
Apart from the possibility of interstate trading and the official acknowledgment of the medical benefits of cannabis, business owners across the US look forward to the tax advantages that come with the rescheduling.
Section 280E (of the federal tax code) currently prevents cannabis companies from deducting their ordinary business costs. This results in a significantly higher tax rate for marijuana businesses than other industries.
The figures from Whitney Economics Some estimates suggest that US cannabis businesses pay an additional $2bn in tax each year due to 280E, which includes millions of dollars from some of their largest firms.
A newly proposed bill by senators James Lankford, and Pete Ricketts, would extend the tax burden indefinitely, even if marijuana is moved into Schedule III.
Under the proposed legislation, any company involved in ‘trafficking marijuana’ would remain subject to 280E, unless cannabis is completely descheduled—a scenario that remains politically improbable in the near future.
Lankford, who has been a cannabis critic for a very long time, presented his bill in a way that would prevent the legalization of this industry.
“Marijuana doesn’t make our families stronger, our streets safer, or our workplaces more productive,” he stated, adding, “Businesses that sell federally illegal drugs—including marijuana businesses—shouldn’t get federal tax breaks.”
Smart Approaches to Marijuana, a group that advocates for prohibition, has backed the effort. This has proven to be a significant hindrance to rescheduling.
SAM President Kevin Sabet hailed the bill as a way to prevent what he called $2.3 billion in ‘tax cuts’ for the cannabis industry, stating that ‘the federal government should not be in the business of giving tax relief to the federally illegal, addiction-for-profit marijuana industry.’
Bill has been criticized by cannabis industry activists who claim that the 280E regulations will make legal cannabis less attractive, thus benefiting the illegal market.
Despite the wide-spread criticism of the cannabis bill, many experts believe that it has little chance to become law. Senators on all sides are in favor of reforming the legislation.
Cannabis Law Resources for Poland
Browse essential legal pages on cannabis sales and cultivation in Poland. You can use these resources to learn about the requirements for certifications, permissions and compliance.
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Polish News Registration and Interests of Cannabis Businesses
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Permissions for Cannabis Sales in Poland
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Authorization for Importing or Manufacturing Medical Products
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Permission for Manufacturing or Importing Medical Products
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Certificate of Good Manufacturing Practices (GMP)
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Registration of Medical Products in Poland