What Is The Medical Marijuana Industry Supposed To Do

It is difficult to run a business. But, those in the state-legal marijuana industry face more challenges than anyone else due to outdated federal laws. Because of the current laws, these individuals cannot deduct their expenses like other business owners. For some, this could mean they end up paying more taxes than their entire year’s profits.

Dispensary owners, growers and medible manufacturers in 23 states that have legalized medical marijuana are left confused as to what tax obligations they should follow. The laws are the problem. Even a skilled accountant cannot give the answers they need.

Many of these business owners have never owned a business or managed a store before. Now they are finding that they cannot compete with everyone else using the same rules. These business owners are already paying horrendously high state fees and taxes, which are higher than any other business owner. This includes the taxes for adult, cigarette, and alcohol industries.

To make things worse, the Federal Tax Court denied deductions for everything, from store rent to legal medical marijuana purchased for sale to patients in this state sanctioned industry. This is done by combining the Controlled Substances Act of 70, which classifies marijuana as a Schedule I drug, with IRS Code Section 280E that prohibits the deduction of controlled substances expenses. They can then seize any profits made by small business owners and drive them out. This is why every person in the medical marijuana sector who submits a tax return honestly becomes a sitting duck to anti-marijuana auditors.

Federal laws must be repealed before these businessmen and ladies can compete fairly. The state-legal marijuana industry will not be able to compete in the current tax environment. This is where the IRS can take all their profits and the black market is safer.

It is obvious that marijuana has medicinal potential. The U.S. Department of Health & Human Services holds patent #6630507 on the anti-oxidant properties of marijuana. In addition, the U.S. Patent Office has granted marijuana patents for big pharmaceutical companies. With the evidence of medical success in Israel and other countries, it seems that the 1970 Schedule I drug list should be repealed. However, unless the medical cannabis industry topshelfbc.com comes together and demands change, it’s unlikely that this will happen anytime soon.

Patients, growers, dispensary operators, medible manufacturers, and patients can expect to face continued problems in the years ahead if they don’t stand up for the industry. Both medical marijuana patients and owners have two options. They can either continue to allow discrimination in their choice of natural medicine, or they can work together to change federal laws. They might close their doors if they choose to accept taxes. But if they insist on the same rights as the industry, it will lead to legitimate business success and real profits.

Every politician swears to represent the citizens of his or her state. If your state has not repealed prohibition, the politician must work to change federal laws. To discuss the issue, medical marijuana business owners should meet with their senators and representatives in their states.

They should expect to see results. Every voter has the right to demand accountability. State-authorized medical marijuana businesses have the right of knowing what their elected officials did to end tax discrimination.

If the industry is not quick to act, it will be obvious that voters in medical marijuana states will lose their rights. Big business will take control of the marijuana plant. Poor people who have experienced success with medical cannabis will be forced back onto addictive prescriptions. Health insurance costs will soar as everyone will be required to pay Big Pharm’s synthetic marijuana prescriptions. Prohibition against nature will also continue.