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Old 13th April 2015, 12:18 AM   #1
lawebdesign
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Default 70% Effective Tax Rate On Legal Marijuana Businesses

Marijuana and marijuana businesses are legal in some states. Some states have legalized both medical and recreational marijuana. The problem is the federal government still considers marijuana illegal. At tax time, legitimate business expenses are not allowed to be deducted because to the fed government, marijuana is illegal.

This is making tax rates that are as high as 70%!

Source: 70% Tax Rates & Other Financial Costs Of The Federal Prohibition On Marijuana

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Old 23rd April 2015, 05:49 PM   #2
kdaniel171
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They legalized marijuana only for tax revenue. But if we need this revenue that much why we just don't legalize gambling and prostitution? I think it would raise more revenue than marijuana.
But how about a really radical idea: donít legalize marijuana, prostitution, or gambling, and try spending less!
Yet as medical marijuana has gained widespread acceptance and even recreational marijuana is taking hold, the federal vs. state conflict grows deeper.

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Old 30th April 2015, 03:30 AM   #3
edward222
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I believe business owners, who are making money running these businesses, are happy to pay the taxes, and the public, which is getting public benefits from the tax revenues and approved legalized marijuana, are happy to have those taxes.

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Old 1st May 2015, 11:37 AM   #4
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Yep:

1. Marijuana income is taxable.

2. No federal business expense deduction allowed.

3. You've admitted to committing a serious federal crime.

Add in a cash business likely to draw the attention of tax auditors.

Not a business model most will want to pursue.

.

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Old 1st May 2015, 01:29 PM   #5
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Uhm... @kdaniel171, in some areas of Nevada, prostitution is legal. And based on what I've read, it actually seems to generally work out better for everyone involved than in areas where it's been driven underground.

As to gambling, 43 states have state-run lotteries (and one of the seven that doesn't is Nevada, which likely doesn't have a lottery only because it might "steal" revenue from the casinos).

The point being, gambling and prostitution are already legal in a lot of places.

And this country doesn't have a very good track record with prohibition. The try at making alcohol illegal played a large part in the rise of organized crime.

I'm just saying...

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Old 3rd May 2015, 10:23 AM   #6
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Quote:
Originally Posted by torka View Post
Uhm... @kdaniel171, in some areas of Nevada, prostitution is legal. And based on what I've read, it actually seems to generally work out better for everyone involved than in areas where it's been driven underground.

As to gambling, 43 states have state-run lotteries (and one of the seven that doesn't is Nevada, which likely doesn't have a lottery only because it might "steal" revenue from the casinos).

The point being, gambling and prostitution are already legal in a lot of places.

And this country doesn't have a very good track record with prohibition. The try at making alcohol illegal played a large part in the rise of organized crime.

I'm just saying...

--Torka
And do you think it's OK to have prostitution legalized?
I find it immorally.

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