Americans for Tax Reform Endorses Allowing Legal Marijuana Businesses to Take Tax Deductions

Americans for Tax Reform, one of the largest conservative groups in the country, has sent a letter to lawmakers urging a change in federal tax laws in regards to marijuana.

Congressman Curbelo (R-Fla.) and Congressman Blumenauer (R-Ore.) have introduced House Resolution 1810, the Small Business Tax Equity Act of 2017, which would remove the inequities in the tax code that are biased against state-legal marijuana businesses claiming tax credits or deductions. Section 280E of the tax code prevents businesses with expenditures connected to illegal drug sales from utilizing deductions or tax credits.

However, in 28 states, D.C., and Guam, marijuana businesses are not considered illegal, yet are unfairly discriminated against by Section 280E. Because of this, marijuana businesses nationwide face income tax rates as high as 90%. This bill will remove marijuana businesses from the arbitrary measures of Section 280E and entitle them to the same deductions and credits any other legal business has. Americans for Tax Reform (ATR) has urged support for this bill. Below is the full letter they sent fromĀ ATR presidentĀ Grover G. Norquist to Representatives Curbelo and Blumenauer:

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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 withATR1 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.

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