Americans could learn from Canada, as the New York Times explains in When Cannabis Goes Corporate. Canada’s free-for-all approach prompted complaints from police and local governments, so Canada adopted a regulated system for growth and sales. Enter Tweed Marijuana, one of the companies licensed to grow medical marijuana in Canada.
The new rules allow prescription holders to buy from approved, large-scale, producers. More informal growing operations suffer. But the changes have spawned an industry of more legitimate producers with bigger business models. And that should mean more sales.
Canada expects to collect taxes on over $3.1 billion in annual sales. The figures stateside could be vastly better. In Washington State, where even recreational marijuana is now legal, the Liquor Control Board hired Prof. Mark Kleiman of UCLA to research the state’s marijuana market. He estimated Washington’s medical and illicit consumption generated approximately $1.2 billion in sales annually.
Medical marijuana neon sign at a dispensary on Ventura Boulevard in Los Angeles (Photo credit: Wikipedia)
Colorado too voted to legalize marijuana even for recreational use. Already, Colorado gets $2 million from marijuana taxes. And while there are rules in Colorado and Washington, both states seem well on their way to regulating and profiting from the industry. Medical use is far more prevalent, now numbering 20 legal medical marijuana states and D.C.
Yet in the Feds’ view, regardless of state legality, marijuana is a controlled substance and illegal under federal law. As more states have clashed with federal law, this mismatch has become more contentious. The Department of Justice issued a response suggesting that it will lay off the raids and prosecutions.
But the feds will lay off only if the states create “a tightly regulated market” with rules that address federal “enforcement priorities” such as preventing interstate smuggling, diversion to minors, and “adverse public health consequences.” Those phrases seem imbued with discretion. This memo to U.S. attorneys makes clear that the DOJ can still prosecute growers and sellers.
To be sure, this is much bigger than a tax problem. And yet the tax problems of the industry are huge and are thought to be one of the industry’s major impediments. Section 280E of the tax code denies even legal dispensaries tax deductions. The main culprit is Congress, not the IRS. The IRS has said it has no choice but to enforce the tax code passed by Congress.
How big is the industry’s problem? “The federal tax situation is the biggest threat to businesses and could push the entire industry underground,” the leading trade publication for the marijuana industry reported. One answer has been for dispensaries to deduct expenses from other businesses distinct from dispensing marijuana. If a dispensary sells marijuana and is in the separate business of care-giving, the care-giving expenses are deductible. If only 10% of the premises are used to dispense marijuana, most of the rent is deductible.
Another idea is for marijuana sellers to operate as nonprofit social welfare organizations. That way Section 280E shouldn’t apply. The industry needs to operate more like other businesses. Sometimes such matters involve structural questions. To avoid trouble with the IRS, some claim that dispensaries should be organized as cooperatives or collectives.
The Marijuana Tax Equity Act would end the federal prohibition on marijuana and allow it to be taxed. The bill would also impose an excise tax on cannabis sales and an annual occupational tax on workers in the growing field of legal marijuana.
(Thanks to reporter Robert Wood and Forbes magazine for this post.)
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Hillary Should Admit She Didn’t Inhale with Bill
Hillary Clinton is by far the most reasonable Presidential candidate about marijuana policy, but we have a hard time inhaling her non-admission about never trying it. After all, she’s married to…Bill!
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THIS TIME
An essay from Higher Ground correspondent Michael Stusser.
As I write this, I’m stoned to the bejeezus. Most my writing sessions begin
this way, firing up a bowl, cranking the stereo, and then hitting the
keyboard for all-night diatribes of psychedelic discourse (editing sessions
are done sober, as a more steady hand is required for sentence structure,
syntax, and coherent thought). Sorry, what was I saying? Oh, right. Thank
god I’m not an air traffic controller.As a modern-day pothead, I’ve replaced my hacky sack with a Saab, roll
joints rather than smoke out of an 8-foot Graphix, and sport Kenneth Cole
more often than tie-dye. But let not my closeted dope smoking be mistaken
for embarrassment. I’m a proud Rain-City Rastafarian and light up in public
as often as possible. Still, like the heads from yesteryear, I have no
interest in getting busted by the Man.Folks have smoked weed ever since it originally sprouted out of God’s green
earth, not because it tastes great, but for the euphoric rush that
accompanies it. Through the centuries, this elevated state has been
responsible for colossal breakthroughs that would not have come about au
naturel: the notion that the world is not flat, for example–that guy was
stoned on pot brownies.Whether for invention, inspiration, or just plain recreation, cannabis
continues to spark creativity and is damn festive fodder. Call me partial,
but parties with people passing the peace pipe seem a lot more fun than
bashes with bloated beer-bingeing and belching (not to mention less
calories). In addition, with ganja you can usually maintain if necessary
(unlike LSD), passing a joint is quite social (unlike blow), and, though
ecstasy seems the substance of choice for the new generation, when the
chemical effects make ravers forget where they live, you’ll be glad you
went organic.Along with herb counterculture comes an “It’s all good” vibe that, in our
road-raging times, is helpful for keeping a lid on things (no pun
intended). Something about firing up a fatty hits the Hippie Nostalgia
button, harkening back to a “Make love not war” philosophy that’s as
relevant today as ever.Marijuana affects different people differently. Many gave up grass because
it made them sleepy, comatose, or they started seeing dark figures slip
around corners. For me, ganja is like a quadruple latte–I’m jacked up and
nimble, having (seemingly) deep, meaningful realizations that my overly
stressed, multitasking, wildly distracted synapses cannot come to in their
normally abstemious condition. As they say in the brochure, sinsemilla
heightens the senses: Thus, Moulin Rouge was better baked, as is Laserium,
Isaac Scott, and a Dick’s hot fudge sundae. Once I become paranoid, tense,
obese, or can’t get it up, I’ll quit. And yes, that’s the talk of an addict.No doubt there are harms to smoking marijuana; anyone who has ever had
bongwater spilled on their carpet can attest to that. Over time, it may
also make you stupid, fill your lungs with black sludge, and induce
indolence and the urge to buy a Lava Lamp. But like alcohol, firearms,
tobacco, and the freedom to drive a big-ass SUV, I should have the right to
kill my own brain cells in the privacy of my own hovel.Speaking of which, my tobacco waterpipe calls. Please hold. . . .
Clearly, everyone should NOT get stoned; surgeons, psychos, and small
children should refrain at least until after hours or till their homework’s
done. As for the rest of us, the key is moderation. Those who “wake ‘n’
bake” are probably using the ##### in an unhealthy manner and should get off
the couch, bathe, and take a hard look in the mirror.(God, I look awful.)
For those of us who do use responsibly (I like the sound of that), the
issue at hand is that we’re criminals (forcing our friends who are cops and
DAs to step out of the room each time we partake). According to NORML
(National Organization for the Reform of Marijuana Laws), almost 20 million
Americans fire up at least once a year (22 mil are on Prozac). And 700,000
of those are arrested annually for doing so, which is not only apt to harsh
your buzz, but costs taxpayers a mint.Maybe you’re one of those Bill Clinton types: “Didn’t inhale, didn’t enjoy
it, don’t support it.” Well, that’s bullshit, and you know it. You probably
ran out of connections, and now have kids and conservative neighbors, but
secretly wish more folks in your hood passed a blunt around the BBQ. I’m
here ta tell ya, we Potheads need you. The country needs you.Now that I think about it, maybe drugs DO lead to insurrection. My heart
and mind race with thoughts of freedom, personal rights, interconnectivity,
instant karma, and (back to the topic) legalization! I am angry. Not for
the sorry sick fuckers who need to overcome tremors or glaucoma or nausea
or chemo, but for the creative minds, seeking higher artistic heights,
searching for meaning in a world that has too many limitations already.Legalization will come about when enough people have the courage to speak
up and admit to having smoked pot, enjoyed the experience, and support the
RIGHT to do so. (Plus, it’ll then make it a whole lot easier for you to get
some.) So go to HEMPfest (Help End Marijuana Prohibition). Sign a petition.
Burn one down. You may find it empowering to advocate something in this
blase age of nonradical politics. It might even make you more vigilant
about other issues that are pissing you off. Get up, stand up, and
“Question Authority,” dude.
See the original post at 420 Magazine
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New York Times Endorses Legalization
By THE EDITORIAL BOARD
It took 13 years for the United States to come to its senses and end Prohibition, 13 years in which people kept drinking, otherwise law-abiding citizens became criminals and crime syndicates arose and flourished. It has been more than 40 years since Congress passed the current ban on marijuana, inflicting great harm on society just to prohibit a substance far less dangerous than alcohol.
The federal government should repeal the ban on marijuana.
We reached that conclusion after a great deal of discussion among the members of The Times’s Editorial Board, inspired by a rapidly growing movement among the states to reform marijuana laws.
There are no perfect answers to people’s legitimate concerns about marijuana use. But neither are there such answers about tobacco or alcohol, and we believe that on every level — health effects, the impact on society and law-and-order issues — the balance falls squarely on the side of national legalization. That will put decisions on whether to allow recreational or medicinal production and use where it belongs — at the state level.
We considered whether it would be best for Washington to hold back while the states continued experimenting with legalizing medicinal uses of marijuana, reducing penalties, or even simply legalizing all use. Nearly three-quarters of the states have done one of these.
But that would leave their citizens vulnerable to the whims of whoever happens to be in the White House and chooses to enforce or not enforce the federal law.
The social costs of the marijuana laws are vast. There were 658,000 arrests for marijuana possession in 2012, according to F.B.I. figures, compared with 256,000 for cocaine, heroin and their derivatives. Even worse, the result is racist, falling disproportionately on young black men, ruining their lives and creating new generations of career criminals.
There is honest debate among scientists about the health effects of marijuana, but we believe that the evidence is overwhelming that addiction and dependence are relatively minor problems, especially compared with alcohol and tobacco. Moderate use of marijuana does not appear to pose a risk for otherwise healthy adults. Claims that marijuana is a gateway to more dangerous drugs are as fanciful as the “Reefer Madness” images of murder, rape and suicide.
There are legitimate concerns about marijuana on the development of adolescent brains. For that reason, we advocate the prohibition of sales to people under 21.
Creating systems for regulating manufacture, sale and marketing will be complex. But those problems are solvable, and would have long been dealt with had we as a nation not clung to the decision to make marijuana production and use a federal crime.
In coming days, we will publish articles by members of the Editorial Board and supplementary material that will examine these questions. We invite readers to offer their ideas, and we will report back on their responses, pro and con.
We recognize that this Congress is as unlikely to take action on marijuana as it has been on other big issues. But it is long past time to repeal this version of Prohibition.
http://www.nytimes.com/interactive/2014/07/27/opinion/sunday/high-time-marijuana-legalization.html?_r=3&smid=tw-share
