Cannabis Company Stages Modern-Day ‘Taxation Without Representation’ Protest in Boston Harbor, Demanding Fair Tax Treatment

<a rel="nofollow" title="Cannabis" href="https://en.wikipedia.org/wiki/Cannabis">Cannabis</a> Industry Echoes <a href="https://leafyleaks.com/tag/history/" class="st_tag internal_tag " rel="tag" title="Posts tagged with History">History</a>: Demanding Fair Taxation Without <a href="https://leafyleaks.com/tag/representation/" class="st_tag internal_tag " rel="tag" title="Posts tagged with Representation">Representation</a> in Boston Harbor Protest

Cannabis Industry Echoes History: Demanding Fair Taxation Without Representation in Boston Harbor Protest

In a significant act of civil disobedience reminiscent of the historical Boston Tea Party, a major marijuana company seized the 250th anniversary of the revolutionary protest to advocate for justice in the contemporary cannabis industry. MariMed, a multi-state cannabis operator, channeled the spirit of early Bostonians and protested against the IRS code known as 280E, which currently denies the cannabis sector vital tax deductions enjoyed by other traditional businesses.

Colonial garbed executives and employees of MariMed staged a compelling demonstration at the Boston Harbor to draw attention to the unfair treatment faced by cannabis businesses under the federal statute. Symbolically connecting with the past, they poured cases of the product into the sea, mirroring the defiance shown by historical figures during the 1773 protest against England’s monarchy for raising the tax on tea.

While Congress takes strides towards advancing the bipartisan marijuana bill, the cannabis industry shines a light on another pressing issue: Section 280E, imposing significantly higher effective tax rates on cannabis businesses. Advocates hope that this bill will reach a later this month, but the burden of Section 280E remains a critical hurdle.

MariMed CEO and President, Jon Levine, emphasized that their protest was not only about their company but to stand as a unified voice for the entire cannabis industry. The unfairness of Section 280E hampers the industry’s mission to make cannabis accessible to consumers and medical patients in all states. To advance their goal of improving lives through cannabis, the repeal of this tax code is paramount.

Despite states like , , and New Jersey providing state-level tax relief to their cannabis markets, the industry still grapples with disproportionately higher tax rates due to Section 280E’s federal implications. However, at the congressional level, Rep. Earl Blumenauer (D-OR) has taken action by reintroducing a bill that aims to amend the IRS code, granting state-legal marijuana businesses the federal tax deductions enjoyed by other industries.

Blumenauer firmly believes that allowing full federal tax deductions for cannabis businesses will lead to increased compliance with the law and potentially generate more revenue. The Congressional Research Service (CRS) supports this view and has noted the lack of clear tax guidance concerning the application of Section 280E by the IRS.

In response to mounting pressure, the IRS provided some guidance in 2020, clarifying that while cannabis businesses can’t claim standard deductions, they can reduce gross receipts by calculating the cost of goods sold to determine their gross income. This update came after criticism from the Treasury Department’s inspector general for tax administration, who pointed out the IRS’s failure to adequately advise taxpayers in the marijuana industry regarding federal tax and urged the agency to develop industry-specific guidance.

As the cannabis industry dons colonial attire in a poignant modern-day protest, they strive to rewrite history, ensuring fair taxation without representation for a business sector that continues to shape the future of , consumer goods, and social norms.

Malvin Felix
I'm Malvin, a cannabis news enthusiast who finds joy in staying updated about the latest industry trends. My passion led me to become a dedicated writer, entrepreneur, and investor in the cannabis space. Through my writing, I aim to educate and spark discussions, while my entrepreneurial ventures and strategic investments reflect my commitment to driving positive change in the industry.

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