Americans for Tax Reform Endorses Change in Federal Law to Allow Cannabis Businesses to Deduct Taxes
Next week Americans for Tax Reform – founded and headed by ultraconservative Grover Norquist – will hold a joint press conference with the National Cannabis Association to call for a change in federal tax laws to allow cannabis businesses to take standard tax reductions, in states where they’re legal.
In speaking for the Obama Administration, Deputy Attorney General James Cole stated yesterday at a Senate Judiciary Committee hearing that the feds have no official possession on a possible change in the federal tax code; the administration did, however, recently announce that they’re working with banking regulators in order to allow cannabis businesses to legally bank.
Under current law, dispensaries aren’t authorized to take standard tax deductions like any other businesses, which oftentimes results in a higher cost of medicine for patients. If Americans for Tax Reform and the National Cannabis Association are successful in bringing a change to U.S. tax laws which explicitly allows these businesses (and soon-to-be open retail outlets in Colorado and Washington) to take deductions, it would have an immediate and drastic effect in any state where cannabis is, or will be legal.
Those who support this type of reform should contact their federal lawmakers – which they can look up by clicking here – and urge them to support the allowance of standard tax deductions for cannabis businesses in states where they’re legal.