Friday, July 12, 2024

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Republican Representative files bill to help marijuana tax deductions

Nancy Mace has been working steadily to make a name for herself as a weed proponent in the icy halls of the federal government. Last year, she introduced her own version of a federal marijuana legalization bill that had much less to do with social equity than the Democrat version. However, because of its slimmed down aesthetic, many thought it had a better chance of passing.

No movement has occurred on that front, but Mace continues to put out the message, this time by filing a mostly performative bill that would allow marijuana businesses to skirt around the obnoxious 280E Tax Code.

This code was enacted in the Reagan Era in order to stop any possibility for tax deductions for business expenses by drug lords. Basically, so that your local cocaine kingpin couldn’t write-off his yacht.

Cut to today, and state-legal marijuana businesses are caught in the crosshairs of the antiquated tax code. Unlike other industries, a marijuana retail store has a much higher tax rate than normal, which also affects the price of their products.

It’s a no-brainer position to create an exception for these companies, and Nancy Mace is trying to capitalize on that opening. But as said earlier, it’s an entirely performative filing, considering that it was filed just two days before a new congress comes into power. The bill will have to be refiled in the current congress.

If anything, the act is reminding people of this annoyance. New Jersey and Pennsylvania have both created their own tax relief programs for this exact problem, but that’s a state by state decision.

Read the original story at Marijuana Moment.

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