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John Brecher / msnbc.com
Steve DeAngelo of Harborside Health Center
In a potentially crushing blow to the burgeoning medical marijuana industry, the IRS has ruled that dispensaries cannot deduct standard business expenses such as payroll, security or rent.
Harborside Health Center, one of the nation's largest medical marijuana dispensaries and considered a model for the industry, is on the hook for $2.5 million in taxes from 2007 and 2008. That is $2 million more than the Oakland, Calif.-based company paid for those tax years.
“I see only two outcomes here,” said Steve DeAngelo, director and chief executive of Harborside. “Either this IRS assessment has to change or we go out of business. There really isn’t a middle ground for us.”
DeAngelo says the ruling will likely be appealed. He has 90 days to respond to the ruling.
The IRS ruling is based on an obscure portion of the tax code -- section 280E -- passed into law by Congress in 1982, at the height of Reagan administration’s “war on drugs.” The law, originally targeted at drug kingpins and cartels, bans any tax deductions related to "trafficking in controlled substances."
Although 16 states and the District of Columbia have passed laws allowing medical use of marijuana, the federal government still considers it a Schedule I drug, the most restrictive category with the harshest penalties.
The Internal Revenue Service refused to comment on the specific case, but letters sent from Andrew Keyso, IRS deputy associate chief counsel, to some members of Congress spell out the official position:
“Section 280E of the Code disallows deductions incurred in the trade or business of trafficking in controlled substances that federal law or the law of any state in which the taxpayer conducts the business prohibits. For this purpose, the term “controlled substances” has the meaning provided in the Controlled Substances Act. Marijuana falls within the Controlled Substances Act.”
The news has spread rapidly through the cannabis community and is likely to have a chilling effect on businesses.
“We are all a bit nervous and frustrated,” said Ken Estes, owner of Patient To Patient Group Collective in San Jose, Calif. “We have tried to comply with every city, state and federal law. We ask for input from all the agencies. But we are still being punished for operating a legitimate business.”
Harborside, which celebrated its fifth anniversary Monday, serves 94,000 patients with 84 full-time employees and brings in about $22 million in annual revenue. According to DeAngelo, the center, set up as a not-for-profit business, pays about $1.1 million in taxes to the city of Oakland, $2 million to the state of California and $500,000 to the federal government.
“We have no complaint about the taxes we pay," DeAngelo said. "We are doing our part. All we ask is that we be treated like any other business enterprise. To treat us like criminals is simply wrong. Drug kingpins and cartels don’t file taxes. We do. But no business, including ours, can survive if it is taxed on its gross revenue. The IRS is trying to tax us out of existence.”
Keith Stroup, legal counsel and founder of NORML, the nation’s largest marijuana advocacy group, says the IRS ruling is likely to stifle the quasi-legal industry and force people back onto the black market.
“You know, Al Capone was taken down by the IRS, not by the FBI or the police. And I can assure you that Steve DeAngelo is no Al Capone,” Stroup said.
Stroup believes the move also could make it more difficult for the medical marijuana industry to capture significant capital investment. Medical marijuana is now a $1.7 billion market, according to a report released this year by See Change Strategy, an independent financial analysis firm that specializes in new and unique markets. The figure represents estimated sales of marijuana through dispensaries in states with medical marijuana laws.
Although the IRS declined comment, Stoup says NORML has received e-mails from other dispensaries that are currently being audited and will likely receive similar rulings. “Harborside is one of the biggest, so that is why the IRS targeted them first,” Stroup said. “But there are other dispensaries that will suffer the same fate unless Congress acts.”
Some members of Congress have taken up the cause.
Reps. Pete Stark, D-Calif., Barney Frank, D-Mass., and Jared Polis, D-Colo., have introduced legislation to ensure the medical marijuana industry is treated like any other business.
Two Republican presidential candidates — Ron Paul and Gary Johnson — also support the legislation.
Stark’s bill, the Small Business Tax Equity Act, authorizes medical marijuana dispensaries to take the full range of business expense deductions.
“You’d think that a time of record budget deficits that the IRS would be happy that a legal business is doing the right thing and paying its taxes," Polis said. "Instead, the IRS seems intent on destroying a successful and legal business that creates jobs and strengthens our economy."
The confused legal situation is “an un-American loop of nonsense,” says Jerome Handley, a tax attorney in Oakland who has more than 100 clients in the medical marijuana industry. “My advice to my clients is simple: Document everything … and stay out of the spotlight.”
William Panzer, an Oakland tax attorney who helped author California’s medical marijuana law, Proposition 215, also successfully fought the IRS in a similar case in 2007.
In that case, U.S. Tax Court Judge David Laro declared that Californians Helping to Alleviate Medical Problems (CHAMP), a medical marijuana provider, could deduct the majority of employee costs as caregiving expenses. The IRS sought $426,000 in back taxes and penalties, but CHAMP ended up paying a tax assessment of less than $5,000.
“This law is not about protecting citizens from criminals. It is a concerted effort by the federal government to crack down on a legitimate business,” Panzer said.
DeAngelo points out the apparent craziness of the law. “The IRS allows me to deduct my cost of purchasing cannabis, which is the controlled substance they say is illegal. But I can’t deduct my payroll or my rent? That, clearly, defies logic and common sense.
"Besides," DeAngelo added, "have you ever heard of a drug trafficker that actually files a tax return? Me neither."
Leave a Comment:
Looks the this blooming industry is going to pot.
It feels like being in a prison while "free"!!!!
The IRS MOB is Muscling The American Public into submission!!!!
You can't eat that...
You can't wear that....
You can't drink that....
You can't smoke that...
You can't see that...
You can't hear that....
Dear Government,
WE ARE SOME GROWN UPS AND THE IRS AND THE GOVERNMENT NEEDS TO BACK UP!!!
THIS IS OUR LIFE NOT YOURS!!!!
Grown ups that need that need to stop smoking weed and get a job!
Just kidding, weed is cool...if you're still in college!
Nah, it's fine, weed should be legal. But if you smoke it you're kind of a lazy waste of space!
Jokes aside, medical marijuana is good. Really.
I think the IRS is using an unjust rule, designed specifically to put this type of enterprise out of business, they should sue the IRS to see how it goes.
Oh, you forgot "You can't play that..." Oh wait, they did and lost in the Supreme Court. I think it's just the IRS strong arming the industry. I guess this is your kinder, friendlier IRS. Why can't the government conform to what the people actually want for a change?!
I guess it's that old school mentality... The same thing happened with booze a long time ago and look what the outcome was with that. I am sure it'll happen with pot too. It's just a matter of time.
Oh, LEGALIZE Pot! Oh, noes, the IRS!
What do you think was going to happen, genius?
I support the legalization of marijuana. What I do not support is the non-science, out of their minds, cult of pot who think literally crazy stupid s**t about pot. And that particular group of morons thinks somehow if you legalize pot, it wouldn't be taxed, made corporate, farmed out to China, and ultimately made into a sh*t*y product.
Now, go at it, smoke some, and pay Uncle Sam. Where's your flag and peace sign now?
SH123 ... the poster-child for why marijuana should be strongly discouraged unless you want to be surrounded by people who are incoherent and having no sense of right or wrong.
So, can I still use my water bill as a deduction?
Disappointing ruling...it singles out one specific industry based on an obviously outdated law. Unfortunately, I don't see that law being changed with the current congress.
One of these days the US will get it's head out of it's @#$# and legalize pot...prohibition only helps criminal organizations.
It looks like the Feds took one out of the pages of history and are using taxes to enforce bans.
Don't much like it, but I must admit I have a fondness for the classics.
This might come to an ugly head, though.
STexan - the poster child for why Texas should leave the Union, unless you want to be associated with humorless prudes.
"Although 16 states and the District of Columbia have passed laws allowing medical use of marijuana, the federal government still considers it a Schedule I drug, the most restrictive category with the harshest penalties."
Hypocrisy abounds. Cigarettes kill millions world wide. Nicotene is more addictive and the addiction as hard to break as heroine. There are hundreds of carcinogens in cigarette smoke. But, because of all the money tobacco pumps into the pockets of legislators it's legal. Forget the thousands it kills. It's the money the politicians get that counts. Tobacco should be a Schedule I drug much more so than Pot.
As long as the tobacco industry is against legal pot it will never become legal.
The Federal Government wants pot to remain illegal and available only on the black market and this is why the IRS (that is already been de-funded by the Teabagger ilk) is going after pot dispensaries instead of collecting the hundreds of billions of dollars that remain uncollected from people that actually owe back taxes. This is true of course because corporations own our politicians and they don't want any competition from pot in their various industries.
Hey Hey Hey all, they got to pay their fair share all....
(satire)
If you think alcohol, cigarettes and pot should be illegal, I disagree, but have no fight with you.
If you think only pot needs to be illegal, you are a hypocrite.
Went to country concert, tons of alcohol and fights. Reggae concert, half black/white and about everyone was smoking. A twelve hour festival and the cops stood there with their arms crossed the whole time.
This is just like the tobacco industry......subsidize tobacco farmers then tax the H*** out of it for more government income.
Then there is the oil industry. Subsidize then tax the H*** out of it.
Then there is ......
I suppose one gets the picture.
Either the Federal government gets off the fence or jump in a lake. I would recommend the latter.
Derek, did you read the article? They already were paying taxes. The IRS ruling is disallowing business tax deductions for them that are allowed for every other industry in the country, including tobacco and alcohol.
STexan
" ... the poster-child for why marijuana should be strongly discouraged unless you want to be surrounded by people who are incoherent and having no sense of right or wrong."
why? the TeaBaggers get away with it?
Liberals, do you see any problem with your liberal state taking about 15% of gross sales?
Yes, I read the article. My point is, however, do not expect equal taxation across all industries. We don't have it now, and we won't ever. So, do you think that the government might, possibly, conceivably would tax the pot industry MORE than another? I think it is extremely naive to think it wasn't going to.
It is of little consequence what the IRS rules since the illegal marijuana industry continues to thrive.
@STexan
Are you talking about pot smokers or Tea Party members? I've never heard a pot smoker clap and cheer about someone dieing in the street because they can't afford health insurance.
Yes, and you liberals just raised the cost of health insurance immensely, thanks!
jpeyton - What's with this obsession with this tea bagger/liberal crap all the time. The other side of the argument "a pot smoker may not cheer or clap about someone dying in the street" because either they are too bonged to do that or they are the precisely ones without insurance. To which you'll counter "Inhumane tea drinking...." goes on and on endlessly. Stop these stupid arguments. Sh123's comment was incoherent either by design or well he is like that.
Signed
-Non member of Tea Party
Derek, no, I don't think they should tax the industry differently. I think they should tax the PRODUCT differently, as they do with alcohol and tobacco. Trust me, the tobacco companies are still taking tax deductions on their lawyers and lobbyists.
What are you talking about lvingbarefoot? My premiums have DROPPED since the reforms started taking effect....by a good 10%.
Try doing business in the US Virgin Islands. We DO pay a 4.5% gross income tax on top of our regular income tax. The first $9000 each month is exempt until your annual gross reaches $225,000, then you have to pay the full tax from then on, even if your annual income falls below that threshold. I'm fully in favor of eliminating ALL 501 tax exemptions, all deductions, credits, etc. and go to a graduated gross income tax system where the first $25-50K of income is tax-free, then income up to $250K taxed at 15%, income from $251K to$750K taxes at 30%, and any income over $705K taxed at 45%. ALL income, whether 'earned", investment/capital gains, alimony, dividends, inherited, or whatever is to be included in that annual gross income, for both individuals and businesses. We MIGHT actually be able to see a balanced budget and debt reduction with that tax system.
Well mycorner I'm not sure where you get I'm obsessed with the Tea Party or the "inhumane tea drinking", heck I have never said anything about inhumane tea drinking whatever that means. There are plenty of people out there that smoke pot that are functional, great at their jobs and good people.
I do have to thank you for your "bonged out" nonsense comment, proving that your just bigoted towards those who smoke pot. Funny how you attack me for pointing out something that IS true and then counter with some ridiculous stereo type. Bravo Dumb @$$.
Ebeneezer, then you are a huge exception or your coverage has decreased, rates have gone way up and that is a fact.
As of the first of the year, my coverage has increased, my script costs have been lowered by half, and my monthly cost has stabilized for the first time in 7 years. Just sayin.'
An industry based on lies is not a legitimate business. Oh don't give me the bullshet, you know as well as I do that over 90% of the so called 'prescriptions' are just a farce.
Congress writes the tax code, not the IRS.
My insurance goes up every year, and I have never seen the cost go down. IRS should review that old tax law, and bring it before congress before they acted on it. They should look at the tax money they will be losing by trying to tax a business broke. No wonder this country is such a mess. If the banks would of refinance most of the homeowners instead of foreclosing, this country would be better off also. You can't tell me that none of those people were worth saving. Greed always takes hold of those who are least deserving. We need to have real people running this country, instead we have rich idiots who do not have a clue of how it is to suvive on very little money. Makes me sick!
STexan - you are describing every alcoholic I've ever known
Looks like the criminals that sell pot will be making more money!
This is very unfair, it is not like this is a surtax that is placed on items that you are trying to get people not to buy, like alcohol or cigarettes. They are trying to keep them from taking business expenses. The sad thing about this is that these businesses are the only businesses that are ok paying taxes as long as you leave them alone.
That being said we do not need a flat tax for all, and if you think that is the way to go I sure hope that you are wealthy, because they are the only ones that will benefit from it.
The war on drugs favors the violent, the drug cartels, the criminals, the schoolyard pushers, the corrupt, the owners of for profit juvenile prison farms. The winners in the war will never be those sitting around the campfire singing kumbayah. Maybe try some 'Bizket or Pantara, but quit your whining and hoping, it hasn't worked.
Those who have no clue must not suffer from conditions that MJ helps. It is definitely safer, enables a person to be functional(dosage is impt.), and causes less side effects than anything that Big Pharma sells...+ affordable in comparison!
The IRs will wind up losing this one. The term trafficking implies an illegal act. These marijuana dispensaries are not trafficking in marijuana, they are selling a legal product. Even the DEA has put the word out that they are not going to go after the legitimate dispensaries for prosecution. This to me means that the DEA does not see these dispensaries as trafficking in illegal drugs. This is a huge mistake on the part of the IRS. If they were to be successful, all they would do is put a large number of dispensaries out of business and cause the price for this legal product to skyrocket, hurting the people who need marijuana to allow them to have a decent quality of life. If this ruling is allowed to stand, may people will no longer be able to afford the medication that they need. It will also serve to drive a large amount of the current legitimate marijuana sales back underground into the hands of the criminals. It will make it far more expensive to purchase marijuana legally through a dispensary than to purchase it from a criminal. I realize that a number of the marijuana prescriptions out there are bogus, but there are also a large number of people who truly benefit from marijuana as a medication. The courts and congress must take action to stop the IRS from continuing with this all advised move.
I'm taking bets -
Who wants to bet this Andrew Keyso with the IRS is a dittohead and Fox News supporter?
@j70141
First of all...An industry based on lies???? What about the majority of the legal, FDA approved "medicines" and "drugs" prescribed???? Most of that is fed to you by doctors who get kickback or some incentive from the pharmaceutical companies. Of course they are legal, because of the deep pockets that the politicians can put their greasy little fingers in!!!! And the doctors usually give you stuff you DONT need. Just to keep you hooked, or dependant!
Secondly, if it were all lies as you propose....is the company paying taxes???? Are they providing a service???? What do YOU know that we don't??? Let me tell you....i smoke pot instead of taking Tylenol...and let me tell you, the marijuana works in two to three puffs, while the Tylenol takes a while. Whats wrong with that??? Do you have some chip on your shoulder???
Its illegal because of some stupid, outdated law. The government is acting like a set of parents who cannot control their children and will try any external remedies to punish their children.
One day it will be legal, as it should, and people will understand the bull@!$%# the govt has been feeding us, and brainwashing people like you, that marijuana is an evil drug.
You should try it....you just might like it!!!!
This nonsense has to stop. We have a supposed "progressive" President who is waging war on pot - absolute insanity. That a society as "educated" as ours still differentiates between alcohol and marijuana only speaks to just how stupid smart people can be.
This is why I lean more and more libertarian every year. Government should provide a standing Army, protect us from our enemies, and provide a social and economic environment that favors individual freedom over government or corporate interests.
Over 55 million Americans smoke pot in this country .... they cross over all political, religious, socioeconomic barriers, are currently the largest reconcilable minority in this country that is being discriminated against because of their insistence on consuming a natural substance, a herb, that man has consumed for thousands of years, without any harmful consequences.
The real question is ..... Under what Constitutional Authority did our government remove such a liberty, which was held by the people through the first 200 years of our republic?
Does the 10th amendment of our constitution mean anything at all or does the Courts almost absurd rulings under the "Commerce Clause" top all?
Our government has been adding secret "taxes" to us for years ! ..
Every time they needed money, They simply added a secret "tax" on all of us .. How ? ... by writing administrative rules that would require us to spend more to use services or products .... force employment. Laws to keep lawyers, engineers, law enforcement, psychologist, Etc working, and create more jobs in the process .. and making the whole system less efficient at many levels. Our economic systems is akin to the "Spanish Armada " ............. big, cumbersome, and unable to change course, even to save itself!
If we don't come up with a new tax to fatten our treasury, and get rid of the "Pimps" that represent themselves as politicians, we are going to be in a worse situation than the Greeks!
100 billion dollars a year in taxation lies with the legalization of marijuana .... it's time has come ... Legalize Marijuana !
Its time that Marijuana supporters unite as a political force .... just as other discriminated groups have done to obtain their constitutional rights .... if Politicians won't support the legalization of Marijuana ....... VOTE THEM OUT ... regardless of which party they represent!
Kinda sad that this business pays more in tax than Exxon and GE.
Medical marijuana is STILL ILLEGAL under federal regulations. Funny how some laws are enforced By THE FEDS, IMMIGRATION and some are not WEED. Why are some States rights left alone and others so blatantly taken away?
Moonbeamracer,
I agree with this statement you made: "Its time that Marijuana supporters unite as a political force .... just as other discriminated groups have done to obtain their constitutional rights .... if Politicians won't support the legalization of Marijuana ....... VOTE THEM OUT ... regardless of which party they represent! "
I also think that we should continue to have drug tests before and during employment, and if you are shown positive, you are held to a lower income or hired behind those of us that choose not to use. Exercise your freedoms, just don't expect the rest of us to have to bow down to them.
lvingbarefoot, you should get your facts straight if you're going to sit at the grownups table and converse with adults. insurance premiums go up every year and always have regardless of this legislation. premiums only went up for people buying their coverage personally, employer coverage went up less than average. the administration predicted 2-3% and since the legislation it went up 3. the year prior to the bill, it went up 5.5%.
Now those libs are against regulations ?
Legal or illegal it's never going away. There are thousands if not millions of people growing it right now...probably in your neighborhood. Matter fact, I do believe (not 100% sure) that in many states it's right up there in the top 3 cash crops and in a few states it holds the number one spot. Cannabis production has advanced tremendously in the last decade alone. People are now producing lbs upon lbs in crawl spaces, attics, backyards, closets and even producing O's in f@ckin computer cases. So the IRS & the DEA can play circle jerk in each others bums all they want, but it ain't goin anywhere. So all this does it harm legitimate providers/business while favoring and emboldening the underground market. The problem with Marijuana is that the government cannot control it wether it's legal or illegal, but when it's illegal they can acquire funds/fines (insane ones at that) and repo property (to sale later). Still however in the end people still smoke weed for health and recreation and have done so for thousands of years. For me however alcohol and cigarettes (aka softcrack) should be banned. Lost too many friends to drunk driving and binge drinking and a few family members to cancer.
Larry: What right do you have to test people and judge them for what they do off in their off hours? If someone's personal life does not affect their work, then who are you to demand anything?
No one is saying bow down to anyone freedoms. You're the one doing that. Lower Income? Excuse me?
Who judges that? You? Your selfishness and ignorance about what freedom is under our constitution is on display here.
How do so many people get so much misinformation - is there a secrete society passing this garbage around? I question everything in my life - what some of you have come to accept, did require an ounce of contemplation, dun jumped right in ya did - splat!
Weed is the most logical solution to balancing my chronic pain problems. I take one oxycodone (for pain) and one Welbutrin (for energy)when I wake up - I don't have a sleep pattern, pain dictates when I sleep, so I may wake up at 4pm - sleep for 3 to 4 hours before pain wakes me back up. I may not sleep again for 24 to 30 hours - I'll attempt to sleep several times - when totally exhausted I'll finally fall asleep.
I'll take another pain pill about 5 to 6 hours after the first one - and maybe another Welbutrin. Another 5 to 6 hours after that I'll take my third pain pill - if lucky and on a real schedule, around 6pm. At around 9pm (or the 14 hour point) I would take something to start to numb me down enough (some aimed at mentally slowing me down - some aimed at physically slowing me down) to sleep - I tried every pharmaceutical there is - muscle relaxers, anti depressants, sleeping aids - you name it and I tried it - all with the same results - wanting to be dead.
When you already suffer with pain, it should go with out saying that your energy levels are greatly affected. Every legal pill goes far beyond reasonable when dealing with the sleep problems associated with pain. What we need is something like pot that has a quick recovery time - back to feeling normal in 3 to 6 hours - not something that has an accumulation factor and after 2 weeks of use you can't get off the couch.
Given the choice I'll go without the pot and stick with the oxycodone - far better at relieving pain - and just go without sleep. I shouldn't have to make such a decision - the IRS ruling is a clear case of emotions over ruling logic.
The best way to break the cycle of government intrusion on individuals and their ability to choose what they want as either a medicine or as a recreational drug is for anyone and everyone who supports decriminalization of marijuana to go out and openly grow 10 plants each and do it every year!
There simply wouldn't be enough man power nor jail space to be able to deal with it and it would soon become moot to try and do anything about it on the local police/criminal level!
It would also serve to end almost 100% of the imports from Mexico thereby eliminating the drug cartels MAIN source of revenue as well as prove to the naysayer’s of marijuana how false their belief is that simply because it is available everywhere (like alcohol is) then every swinging Jack and Jill in the country will be stoners who are moving onto heroin and crack and that 2 years olds will be rolling joints for each other!
This will never happen though; people do not know how to stick together for a cause anymore and the powers that be use threats of arrest and imprisonment as well as intimidation to control the masses nowadays!
larry
Just because you test positive on a drug test does not mean that you are under the influence or impaired by the substance that you tested positive for!!
Do you honestly believe that if a person smoke a joint today and gets hit with a drug test 3 weeks from now and fails it they are still impaired?
That is going to go away before long I might add!! There have been challenges to arbitrary personnel actions based on the result of failed drug tests under the guise of the "drug free workplace" and everyone’s right to a drug free workplace!! A failed test does not equate to impairment so it also does not equate to a dangerous workplace!
The courts can no longer ignore this fact and will eventually have to address it and as long as your actions in your own home do not interfere with your neighbors or your work performance then no one has one damn thing to say about it!
PS marijuana is a misdemeanor so there is a difference in testing positive for something that is less of a crime than or the same as speeding in your car and a felony level drug ie cocaine, heroin, meth etc. So I don't expect the ruling to allow people to test positive for felony level drugs, just MM level ones!
The IRS is a Federal Agency. Therefore it must follow Federal Rules. The businesses can only deduct cost of goods sold, that is the law, end of story. Do not blame the IRS for following the law.
HA HA HA sooooo phuny...
First they say, "Legalize and tax it dude!!"....THEN, they do just that - and everybody whines!!
Goooooood Grief!
Yakfitguy,
What right do I have to test people and judge them? As an employer, I have every right. The constitution doesn't guarantee you a job, and it doesn't mandate what employers must do, which is why we have employment law. You throwing around the word constitution doesn't mean much. I think you misunderstand the document you clearly haven't read.
Next, I don't care if it happens on or off the job, numerous scientific studies have proven residual cognitive deficiencies in the areas of memory, learning, and execution, that last for weeks after your last high. It doesn't matter if you're high, you're still impaired.
What's more, according to the National Institute on Drug Abuse (NIDA), which compiled the results of 11 scientific studies on the effects of Marijuana use:
So, your "Personal" and "Private" use of marijuana bleeds over into my workplace, even if you aren't high. Consequently, anyone who does use, man up and accept the consequences. If you're intentionally impairing your ability to work by smoking up, then be willing to be passed over for getting hired or if you're already working somewhere, be willing to be paid less than someone who isn't using and isn't impaired. That doesn't seem unfair at all. The choice to use was yours alone.
In this case, yes it does, depending on the length of time.
According to scientific research, and the National Institute on Drug Abuse, yes they are. A person that uses marijuana is impaired for weeks after they last used. See my comment in 1.54.
Larry,
I wouldn't work for you if I was a user or not. I'm not, but given your attitude towards others private lives, you would be a tyrant and a snoop. Go ahead, drug test anyone you like. They also don't have to work for you and your customers don't have to do business with you either.
Question Larry: Do you test for alcohol? If you don't you should read the study by DR. Michael J. Frone tilted Work Stress and Alcohol Use-1999.
You are quoting something from a report generated by a biased government agency who has taken the stance that marijuana has zero medicinal benefits and therefore should remain on the schedule one status of the controlled substance act!!
This is in direct contrast to the American college of physicians, the AMA, the National centers for disease control as well as numerous other professional medical/psychological organizations recommendation that marijuana be rescheduled to a class 4 or class 5controlled substance so that it can be legally studied for the medicinal benefits that they now know that it possesses!!
They further agree that besides the smoke factor in smoked marijuana that marijuana is one of the MOST BEGNIGN substances that a human can ingest as far as health concerns go and if marijuana is eaten instead of smoked then it is almost completely benign! It doesn't have anything near this universe the side effects of alcohol does on the body AND the brain while it has been proven to have many benefits that cannot even be compared to, even in the pharmaceutical industry as far as alleviating PTSD and lowering stress hormones/levels!!
If you want to quote something to bolster your argument then get your information from a reliable source, not a slanted government agency hell bent on it's own agenda and spreading false propaganda in an attempt to do so!!
I myself have people work for me and to tell you the truth the ones that I have the most problems with as far as attendance goes and attention to detail and accidents are from the ones who drink alcohol! Your numbers that you posted above are completely inaccurate and more so just plain false!!
State Farm insurance corporation does not random drug test any of its employees!! The only time it does test employees is when there is reasonable suspicion that they are under the influence at work! Micron Inc in Boise Idaho where my sister worked during the 90's and until 2006 instituted a random drug testing initiative at the urging of some companies that they contracted with as well as on information that the drug testing company gave them telling them that their production would all but double, accidents would be nonexistent, employees wouldn't ever call off sick again etc etc.
After almost 4 years and millions of dollars flushed they scrapped the random drug testing program simply because it did not work as well as do what they said it would!! They lost some of their best engineers right off the bat because the engineers were in demand and they let the company know before they started the drug testing that they weren't going to stay at a company who judged them on what they did off the clock!! Micron actually saw an INCREASE in employee call off's/sick leave usage, they saw an increase in employee turnover (one of the most expensive/costly things for any business) AND interestingly enough they saw a decrease in workers’ comp claims but their health insurance company saw a direct increase on emergency room visit co-pays in perfect proportion to the decrease in workers’ comp claims, so employees were getting injured at work but taking it to the outside hospital on private insurance so they could side step the mandatory post accident drug test required by workers compensation!!!
So keep on with the narrow minded thought process and keep on supporting the failed war on drugs using the un-American body fluid testing as a means to underwrite their failed and meaningless war on drugs!! The disinformation that these agencies’ push out for the public to believe for no other reason than to support their agendas’ have cost this country more than just money, they have cost it to lose its place as the greatest nation on Earth!!! We are looked at as a nation who is as wasteful as it is one of the largest violators of basic human rights and intimidating anyone or country who questions the actions of the US or the reason behind them!!!
I may catch some heat from my conservative friends. Yet who cares. I have been experiencing chronic pain. I have Hep C, yes when I was a young man I used Intravenous drugs, actually was at a biker house and was basically forced to do Crystal that way. So yes I am a conservative with some liberal leanings. I learned my lessons and no longer abuse drugs and haven't for quite some time. Yet due to the pain I suffer from and the fact that its my liver that is the problem. Those of you who are physicians know that most pain meds go through the hepatic system. Well I have moved to Oregon and yes they have Medical Marijuana. I have used Medical Marijuana for a while. Then I have been diagnosed from smoking cigarettes with Emphysema. So they put me on pain meds, which are much worse for me then the former. Now that I have been on them for 4 months at the advice of a Dr. I am experiencing problems with the pain meds. I wish I never had let the Dr. put me on these. I was better off on the Marijuana, at least I won't suffer more damage to my liver like the pain meds are doing. When I read this article, it was interesting that the Media felt this was the perfect time to bring this out. With the scrutiny coming upon the Federal Governments Highest Judicial Office in the land, Eric Holder in his involvement in " Fast and Furious Ops". It does not take a genius to figure this is distraction from the truth. The truth is these Mexican Drug Cartels have more pull in the US then you realize. Who benefits when these legal facilities are shut down.
That is right the Mexican Drug Cartels. They and their growers that they send across our borders to live in the mountains of California and grow their product. They will benefit directly, why? Well look they don't have property the FED can seize. Yet all these citizens who went through California's application process to in order to operate according to State Law. They have money and property to seize. Then you take into account the tax situation. This is nothing more than broke dick Governments horrible attempt to get some tax monies. Look at the amount they want one person to write a check for. This stinks to high heaven of nothing more than a distraction from the real drug dealers our own DEA/ATF/FBI/CIA etc. who are allowing the flow of illicit drugs to come from Mexico and even arming them.
When you want to hide the truth , distract the masses. For those of you who voted Obama in. Well I hope you like his double talk. You all thought he was going to legalize Marijuana. Well that is not happening. He is just answering to his real financiers. So you want more Federal Government involvement in State's affairs. Hmm what happened to State's Rights. Who suffers from this. Medical Marijuana was the one tax base that was shoring up California's dwindling economy. Do you begin to see the picture. You think those who accuse the Fed of wanting to take over. Well look at what is happening. What else will begin to happen. Well not only will the cost of Marijuana go up, so will crime along with it. I for one feel Alcohol is more dangerous than Marijuana. When will we begin to grow up and figure out that the best way to deal with this is to legalize it and tax it. Then we can stop jailing people for offenses like possession of Marijuana.
Now for my conservative friends, come on tell me I am a lazy fricker. That seems to be the mantra for you. Oh lets see Red diaper Doper Babies! I am just as American as the rest of you. I just think its high time, no pun intended to end this stupidty. Even our Founding Fathers used Hemp. When " Hemp" was renamed Marijuana in order for them to call it a drug and make it illegal, so it would not threaten the wealth of the DuPonts, Hearsts, and Timber Industry. Oh yeah they also got a Senator on board and spun up all this BS about Marijuana. I love it when people say its a gateway. When will we ever learn from our past mistakes. Well I guess Obama and his cronies need the money. I think its time to march on DC. In Fact Overdue.
sumatymrolls
I lived in Boise when this occurred. These same individuals did the same thing in the Auto Industry and all the New Car Dealerships began to drug test. Guess what! They lost their best salespeople. Why? Because they did not want to be scrutinized for what they did on their own time. So what they go home after a stressful day and smoke a couple bong hits. No different than the person who stops by the bar on the way home for a few beers. OH WAIT! They are different! They are drunk behind the wheel of an automobile risking not just their life, but lives of innocents. Yes Alcohol has killed way more people than Pot. Hell when I smoke pot I just want to relax, watch a little TV, eat some good food, then go to bed.
I fought the US Navy on this same thing. Yes I lost and received Other Than Honorable Discharge for supposed THC in my urine tests. BTW, the urine test I submitted back then was H2O, came back positive for THC. WOW how did that happen. Two guesses and the first one does not count. So needless to say a person who graduated top 4% of his Class in Naval Electronics School got canned. ME. Stupid is as Stupid does. Did not see your comment and you sparked me to write this. When will we open up our eyes to the truth. Maybe now that Micron does not test I will move back to Boise and land a Electronics job there.
Just FYI you ever notice how stupid your buddies in High School who where the big boozers seemed to also be the stupidest, and those who smoked pot seemes like they where the smarter ones. I still would rather have a person who smoked a few joints the night before to work beside me on high voltage equipment than a person who tied one on the night before and they are useless for most the next day because they are hung over. My XO in the Navy did not like that answer.
Larry,
I just saw your post. Are you that ignorant or just not educated. Go back to school and take some classes on Bio Chemistry and the Human Body and its metabolic system. I am sure glad your not a Medical Dr. In Fact I would never work for you ever or would I want to.
What was the old saying?
If you want to kill something, legalize it and tax the @!$%# out of it.
We're at the 'tax the @!$%# out of it' phase.
Lulz
Stupid. All this will do is drive it back underground and cost the US Treasury money. So stupid...
Plus driving out businesses in today's economy is just unbelievable.
Then let's remove tax breaks for the tobacco and liquor industries. Oh wait, we can't do that, they spend millions of dollars a year lobbying (bribing) Congress.
Perfect responce. I was thinking the exact same thing. cigarettes cause cancer (fact). Alcohol has killed who knows how many (fact). It's all about furthering the political career or money. I guess those two go hand in hand.
I believe the law as stated in this article can be challenge. It is too vague. The term "trafficking in controlled substances" would cover the prescription drug industry too since every drug they make is used to control something so therefore a controlled substance.
Bluelake...tax breaks for tobacco? I believe tobacco farmers still receive subsidies.
(Silly humans!!!)
Ah yes, subsidies. Corporate welfare the Republicans love.
Larry, google Solyndra, it seems D's love corporate welfare also but can't even do that right!
Yes, let's Google that. When I did, I saw a story of how the deal was started by the last POTUS.
And even that moron was smart enough to pull the plug.
The 19th amendment was repealed in the height of the great depression. (the previous one) It provided hundreds of thousands of jobs and half a billion dollars in tax revenue, as well as creating workable controls on sales of alcohol. A vote to keep the drug war is a vote to give your kids all the drugs they want. A vote to keep the drug war is a vote to send billions more to the drug cartels. A vote to keep the drug war is a vote against millions of new jobs. A vote to keep the drug war is not only a vote against freedom, but a vote against economic recovery. Only an anti American, terrorist sympathizer, sponsored by criminals would want to continue the war on drugs.
Robin- It was the 18th Amendment (The Volstead Act) that created prohibition. The 19th Amendment gave women the right to vote. Just think, it was not until 1920 that women were allowed to vote in this country. The main opposition to the 19th Amendment came from...guess who...
Robin Steele
It would have been better to repeal the Sixteenth Amendment, the federal governments right to tax.
hs, the feds are still giving money to former holders of tobacco allotments. They will run out in just a few years. Yeah, I know it's stupid. Congress can't even cut the easy stuff.
Yea, so what, Solyndra went under, it was one green company, subisidized one time.......why don't people talk about the continuing subisidies Haliburton gets from the government.....billions upon billions are given to them.....what do we get in return from Haliburton........11 dead on an offshore oil rig and the worst oil spill imaginable that ruined a coastline, killed thousands of animals, and ruined the livliehood of thousands of fisherman, restaurant owners, etc....but the repubs can only talk about Solyndra....what a bunch of BS.
...yea so what...how 'bout the notion that no one company is funded by the feds, nor can give contributions to the fed government outside of tax due or that farm subsidies are strictly re-imbursed (w/o fallow farming subsidies allowed) and that all big business and lobbying being part of any government of our USA being strictly separated outside of the tax due on the business's purchases like everyone else in the USA...both the current DFL and the GOP are nonsense, vote for CAIN, least wise he's earned his keep...
swlewis57-536260,
YOu can Google all you want. Just like a Democrat to take this off subject and bring something that has nothing to do with the subject. If your going to speak on something. Get the facts straight. Yes the previous Administration looked at the deal and yes it was on the table. Then after further analysis they decided it was a bad deal. Now lets go forward into the Obama Administration. His advisers at first look also thought it was a bad deal. They even advised against the Photo ops. I guess those multiple visits to the Whitehouse by Solyndra's number one investor with his bags of campaign donations must of changed someones mind. Hmm lets see Oh Yeah President Obama is the one who met with him and then went to California to hype the Media on Green Energy. Hey I am all for it too. Just not at the cost of my tax dollars when there is not one ounce of oversight of those tax dollars. Why don't you try getting a loan and going bankrupt afterwards. You will pay it back with the new laws.
The American people need the IRS stripped of ALL of its enforcement and penalty assessment authority. Law enforcement id the jurisprudence of the Justice Department, and penalty assessment belongs first in Congress, as penalties for violation of criminal codes are generally contained within the code itself, and then passed forward to the Federal Courts.
The IRS is the poster child for regulation-gone-wrong.
That's an understatement. Just think how much overhead the government could save by stripping the IRS and its laws to the ground and starting over with a flat tax. I can't imagine there would be much political repercussions from going after the IRS.
Who wants all those tax lawyers out of work and looking for something to do!
The IRS are "job creators"!
The only way to make things better is to vote for Ron Paul.
If he fails to be nominated, vote LIBERTARIAN.
For those of you who have been voting Democrat and Republican over the
past 40 years, this mess is your fault.
Legalize Marijuana, America should have learned a lesson from the past attempt of banning something A majority of Americans use and demand called PROHIBITION!
they can't Legalize Marijuana
because they will only get paid one way
more money for them in PROHIBITION
I think it should be legalized or at least decriminalized but your wrong when you say the majority of Americans use it . The majority may have tried it but actually most do not use it.
I'm pretty sure the majority does not use marijuana.
^Where you hang out... ;)
Well. 100 million isn't exactly a majority, but 1/3 is good enough for me.
No I want it kept illegal because that way it stays cheap. I can see all of you want to tax it NO!!!! I have seen what has happened to smokers, drinkers, and soon fat people NO!!! I want and will continue to have cheap weed. You want more tax money? YOU PAY IT leave the rest of us be
God Bless America we have to protect the cartels and big pharmaceutical companies from the scourge of medical marihuana. Who cares about the suffering of sick and disabled people, once we privatize social security and eliminate all entitlements most of them will die off anyway. There is no room in the world anymore for useless eaters we must protect the producers, this is evolution at it's finest to ensure survival of the fittest not the weakest, welcome to the new world order.
so right!!
someone who gets it
Must stop typing and return to consuming....
They make plenty money they should pay their taxes like we do.
They are paying their taxes as the article stated, but the IRS is not letting them take the standard deductions that every other business takes.
Thats b/c they don't want them to stay in business
Of course, which is why it is wrong and I hope they win their appeal against the IRS. I see nothing wrong with legalizing marijuana, and collecting taxes off the sales just like alcohol. This coming from someone who does not use drugs either.
How is it that people that don't know how to read can all the sudden type?
The IRS as an entity is not supposed to be able to "not want them to stay in business." That sort of regulatory power is not entitled to them. The problem is that the IRS as well as most other federal institutions, take orders or are pressured by others within the govt. DEA should have no power over IRS.
Big Brother is biting off his nose to spite his face...
mo nig,
So are the bible thumping idiot conservatives.
Welcome to the world of burdensome regulations for businesses. Most businesses have to put up with lots of stupid arbitrary regulations that get enforced differently depending on who does the audit. Their normal response to us is "You should have known.".
I just wonder if pharmaceutical companies that sell "controlled substances" are allowed to deduct their rent & payroll expenses? Or if the IRS is claiming the Marijuana industry is "trafficking" when they are following state regulations in the sale of the controlled substance? I see a double standard.
Personally, I don't believe in marijuana use and don't want to see it legalized. But I also believe in equal treatment from the government. The IRS is wrong in their determination or else they need to be auditing all controlled substances sellers.
with a name like Dazed & confused are you sure you don't believe in marijuana use ??
Anyone who doesn't want to see marijuana legalized is either profiting from it via the black market, or they are just plain ignorant about it! I suggest that you get educated and a good start would be to read the book: "Marijuana is safer - So Why are we driving people to drink?". It is an excellent book that, unlike our Federal Govt, speaks the truth about the so-called dangers of marijuana and why it was made illegal in the first place. I'll bet that you, Dazed & Confused, will be surprised to learn that it has nothing to do with any real danger but everything to do with racism and predjudice! Our Govt should be sorely ashamed of it's idiotic policies.
Evidentally Don you didn't watch the movie "Reefer Madness".
I bet you didn't watch it either Mark-3140636. Because if you did, you would know that it was a beyond laughable. I honestly find it hard for ANYONE to fall for that load of BS shoveled out by the government. No one has "chopped up his family with an ax while high" as the movie states has happened. Watch "The Union", then come and talk. Or better yet, stop accepting spoon fed information as truth when it is FAR from it. The drug is not a gateway drug, it's not this horrible bs that you have been taught your whole life. If it were so horrible that anyone that has tried it, even once, deserves to have their entire life ruined forever...... then why do we have so many people in places of power that have admitted to using it? Hell, the president himself, when asked if he "inhaled" laughed and said "yea, that was kinda the point". Yet we, the people of the United States, voted for him. Time to take the bag off your head guys and see the truths around you. It is only illegal because of money and political issues, end of story.
I'm pretty sure Mark was joking. Reefer Madness was a hilarious movie. One of the best comedies of all time.
One of the best UNINTENTIONAL comedies of all time no doubt!
It was one of the most boring propaganda movies I've ever seen.
"Reefer Madness" is not funny, unless you smoke a joint before watching, it if not it's just stupid. A funny movie is "Super High Me" but warning don't watch this movie if you don't have any stash or you sure will be joanzin.
Mark, too many is right the movie was total government propaganda and racist too. Hoover to this day probably turns in his grave I hope for the crap he put people thru. Dam law enforcement just won't give up coercing other gov agencies to enforce gov laws that are crap. Thing of it is the same @!$%# law enforcement would benefit from an occasional joint to washout all the brainwashing lies they believe.
Actually MJ was made illegal based on racisim. The rich white folks down south really were enjoying the cheap mexican labor but did not want any of their culture. They forced their politicians to create legislation claiming when mexicans and blacks smoked the demon weed they would go out and rape white women. The feds took a different approach due to hemp being a legitimate crop for farmers to grow. Rather than make it illegal on a national level they required anyone wanting to grow hemp to purchase a hemp stamp which of course were never produced let alone made available. Sound familar, the DEA cannot justify their existance if they loose 80% of their business. Of course they are going get their IRS buddies involved. It amazes me that we as Americans are willing to be involved in a 40 year war that has cost over a trillion dollars, not including manditory minimum jail sentences, paid for by US taxpayers accomplishing nothing. We have only brought the bloodshed to our own boarders and made drug cartels billionaires. The United Nations actually has claimed worldwide drug violence is directly associated with the failed US drug policies. Apparently history teaches us nothing. Legalize it, tax it, and administor it just like alcohol or tobacco. America will be a better place for it...
I am betting big pharmaceuticals are NOT going to have to pay, as they have to many lobbyists in Washington and other places and too many kickbacks go back into congresses pockets to change that. There is no other reason that a business no matter what it is, should they not all fall into the same category.
TAXES are TAXES and if one does not have to pay then neither should the other. Obama should have jumped on this from the get go. That is how the rich and powerful stay in business and small business get pushed out, so where is the Dems outrage.
Isn't that what Obama is all about. Support of the little guy, or many be it is just more smoke and mirrors that has come from the White House for the last 3 years. Lies and more lies. Nothing new.
Do you honestly think that a Republican president would stop the IRS from shutting down these businesses? I think not. They are the ones who want to tell us who we can marry, what religion we should believe in, what we can read and what we can watch on TV and in the movies.
It is obvious to anyone who has been paying attention, and who cares about justice and freedom, that our Federal Govts policies regarding marijuana are more nazi-like rather than democratic-like. They continue their utter stupidity and this is just the latest example! Marijuana patients and their providers should be treated just the same way as other patients that are getting drugs provided by the big pharmaceutical companies. Of course, they should be taxed in the exact same manner!
Better yet, just legalize marijuana since it is less harmful than tobacco or alcohol. Just let adults go into a store with similar regulations as those for alcohol. If someone wants treatment medically or if a healthy adults wants it for recreational purposes then so be it! Let them buy and use it legally. Let's stop the black market and all the crime associated with it. let's stop putting good Americans in private prisons. Let's stop our Govt from acting like nazis regarding this issue.
I wonder what it's going to take... Maybe if marijuana could be found to bring people back from the dead - maybe that would finally get it the medical recognition it deserves. But then again, I'm sure that people like Johh Boehner or Lamar Smith would still find verbage to villanize it...
Good lord if marihuana brought people back from the dead they would really up the laws against it, no profit in that.
The problem is that there are bureaucrats making money in the prison industry, If marihuana was legalized it is too easy to grow. All that forfeiture money, prison industry money, war on drugs money gone. They don’t care about bankrupting the country all they care about is profit, greed is the cancer of society and the US has become the best government that money can buy.
yep you got it there is much more money in the legal sides of things like locking you up.
Forfeitures too mo money mo money mo money, God Bless the USA the best government money can buy.
I don't want gawd or government telling me what to do, what were we talking about? Oh! That's rite 'weefer gladness' isn't that it?
Winning the war on drugs! Let's drive more businesses into the ground!
They knew from the start they were operating in a legal gray area. States say yea, Feds say nay. There were bound to be complications like this.
Of course, if the Feds say they aren't a legal business at all, I'm not sure why they are collecting taxes in the first place.
Feds are total hypocrites.
You are supposed to declare illegal income. There is even a category for it. Illegal income tax. I can't remember which form it's on, but it is, clear as day. I remember seeing it, and thinking; who would be foolish enough to declare illegal income, but apparently somebody does.
I.R.S. stands for Im Realy Stupid.
I.R.S. stands for "If you fill out your damn tax return correctly and keep good records you wouldn't have any problems with them."
It's called "No Change Reports."
The IRS's job is to find people who are cheating. They make them pay what they owe to the government. That way the government can actually fund every program YOU benefit from.
There has never been a shortage in the supply of Marijuana in America. Why not just legalize it and tax it like any normal business. There are businesses that sell alcohol, tobacco, and firearms, why not marijuana.
It is called freedom. We should apply the same logic to gambling. If we can legally have short sells, speculation, and day trading on Wall Street which has become a pure crap shoot, and allow states to tax the poor with lotteries, why not legalize Sports Books and Casinos nationwide.
You can legally pay a woman to have sex with you, film it, and legally sell it as a porno, but if you are not filming the act and selling the video you are breaking the law.
In the end the perceived morality of the social conservatives tramples on everyone elses' freedoms. With that said religon itself is a huge business tax it too!
Don, I agree with you and there is one thing that everyone seems to be missing including the IRS. IF they tax them or hold them to not allowing deductions the federal government is thereby indorsing medical marijuana. Its as simple as that.
This is brilliant! Someone should shout this to all MJ advocate attorneys. By collecting ANY taxes from dispensories they are proclaiming that the Industry is legit. OR they are taking bribes to allow an illegal industry to exist. Those are really the only two options.
That is irrelevant the IRS taxes income and doesn't care whether it is a legitimate/legal business or not.
All drug store pharmacys dispense schedule 1 drugs. Why aren't they under the IRS thumb?
Because they have an army of lobbyist trolling the halls of Congress and lining the re election war chests of our politicians.
Our Government and the IRS are idiots. IDIOTS. I don't even use pot but when something is made legal, the IRS shouldn't have any power to stiffle that. If the MM industry cannot deduct regular business expenses then hospitals and pharmacy's that sell controlled substances for medical reasons should not be allowed to deduct either. What a bunch of idiots we've become.
This is one of the inevitable consequences of the perpetration of the myth that marijuana has been "legalized" in various states. It's still illegal by federal law, and the IRS must follow federal law. Personally I think it is ludicrous that we've continued to maintain it as a Schedule 1 drug, and outrageous that the feds have done everything possible to block clinical trials; the answer is not to ignore the law, but to change it. I really wish that supporters would address this issue honestly.
Dissolve the IRS mafia.
Who supports this action? Organized crime, of course. Also federal agents whose jobs depend on consequences of this action - continued employment in a recession. Who doesn't support it, most people.
This IRS ruling will cast a pall on the IPO of my chain of franchised dope stores, Pot R Us :o(
There's nothing illegal here. The industry should just suck it up and treat it it as the cost of doing business or goto jail for tax evasion.
This is pretty much the way I look at it. Sure those guys that opened early will go out of business and maybe even to jail, but everyone that starts now knows to collect for those taxes up front so there shouldn't be a problem. Anyone who starts a medical marijuana now should send these guys a thank you note for flushing these problems out.
It is illegal. They are unfairly taxing a specific industry with different rules then every other industry. It is not their place. If the federal government wants to add a tax to the sale of marijuana products (like already exists for alcohol and tobacco), I fully support that, but for the IRS to decide that they cannot deduct rent and payroll, as every other industry does, is completely wrong.
If the IRS, and therefore our Fed Govt, sees this as legal and taxable, then it should be treated like any other business (i.e. with the same tax rate and deductions). Anything else is predjudiced, unjust, and should be illegal in my opinion.
Really? lets say you own a business selling a legal medical drug and you cant deduct ANYTHING from your business expenses. at all...and the guy next door to you is self employed (, lets call him Mr WalGreen.) and he is also selling medical drugs and he can write off all his normal business expenses. Do you think that is fair? i am self employed and write off my home office, travel expenses, repairs to home office, supplies, etc. If I couldnt do that in my small little business it would kill me come tax time. I dont think you understand why this is wrong.
Thanks NeverSummer... some people just don't quite understand about businesses deducting expenses. Businesses pay taxes on their net profit after all expenses are subtracted from their total sales. You might do $5 million in sales for a year but only make $200k after subtracting employee salaries, rent, cost of inventory, utilities, etc. If you had to pay tax on the amount of your total sales, the total would be higher than the business' profit.
There is almost NO business in this country that could afford to pay taxes on their gross total sales. This is an obvious and serious push to close these businesses down and another good example of our government cutting off its nose to spite its face.
erockaustin: I believe this is their exact agenda. If they cannot be profitable they will not be in business. No one with any brains runs a business knowing they will be in the red. Let's give our tax free monies to the drug cartels in mexico instead of our American business men.... Stupid stupid stupid.
So by your way of thinking, Hampster, we should also legalize crack???? How about those great little pain pills everyone scams Docs for and takes?? Let's just put them all on a shelf at Wal-Mart.. Where "America Shops"....
While some states have made it legal for medica use, anyone read some of the conditions people are getting it for???? Not just terminal people, but people who say their joints hurt, headaches, anxiety, you name it. This is nothing but a scam to make it acceptible to buy their "weed" at a dispensery. Has anyone looked at how many people jumped into the biz of selling pot? Unbelievable. California is a good example. 400 shops just in Southern California alone.
Below is from a report regarding this problem.
The doctor, James Eisenberg, saw four healthy people sent by KCBS. He rejected a
17-year-old for being underage. But after getting a brief consultation and
paying $175, the other three got their papers. One complained of dry skin,
another of hair loss, and the third said high heels hurt her feet.
This is why IF a state makes it legal, it should be issued by a pharmacist and the cause of use be for terminal patients or transplants, etc. NOT for dry skin. The lobbiest made California's law vague on purpose to allow basically anyone to be able to issue the drug.
I think you are buying into some of the hype and propaganda. The drug should be treated in the same manor as Alcohol and Tobacco. Do some research about the truths about marijuana and hemp. Watch "The Union". Fact is, not producing, selling and taxing this crop is sending over 50 billion dollars to other countries and the massive failure called "The War on Drugs" costs this country over 500 million dollars a year and has done nothing to slow or stop the import of illegal substances.
The documents our country was founded on, were written on hemp paper. This is one of the reasons we still have them, hemp paper outlasts wood pulp paper 100 to 1. Hemp rope is stronger and cheaper than cotton rope. Hemp cloth is tougher and longer lasting than cotton cloth. Hemp seeds have the highest omega3 content per unit than any other seed. Hemp oil is a cheap and effective biodiesel. There are far too many pros to continue focusing on the single con... that the female plant makes people feel good when injested.
Lets grow up America.
I find myself agreeing with you that some patients simply want to be able to consume cannabis without having to worry about getting busted for it. That seems pretty intelligent to me!
Now YOU seem to be the one buying into the Hemp wagon. You must belong to that group that is pushing hemp fabric, etc. I'm not a stick in the mud as the lower post says. I simply think it is still illegal in the US (except the states that passed it for the so called pain management/terminal illness). I manage a resort and I find by FAR most of my young employees are smoking dope to get high at work, before work and after. Probably had one employee in fifteen years drink on the job. So yes, alcohol does make you high, but seems to be generally consumed after hours. Too easy to get high on pot and still work. Just makes them "mellow". I main gripe about the whole deal is all the bogus claims to buy it from these shops AND the number of shops that pop up with either past drug dealers or probably people tied to crime in one way or the other. Too many to regulate and supervise. Hence my reference to the undercovers who went to a crack pot Doc and give is for sneezes.
I suppose you are entitled to your opinion, WivesFan, but the above sounds like you are happy to force that opinion on an entire nation based on your tiny frame of reference and a bunch of wild-eyed, unsupported suppositions. What exactly do you mean by
as if anyone with common sense would find that derogatory? Thomas Jefferson and George Washington both grew hemp. I don't mind keeping company with them.
And
You did read the article, right? Most of what you wrote, if read as you wrote it, supports the medical dispensaries...you even say pot doesn't affect your employee's work, but only makes them "mellow". If this is in fact true, it is bad...why? You've totally lost me.
Ok wait.. so all the pharmacies that sell controlled drugs can't make tax deductions? But they do, and the IRS does not throw it back in their faces! This is just another "stick in the mud" mentality. The Government itself still makes and distributes medical marijuana to several customers. So the fact that the Government is producing a product and giving it to customers for medical reasons with all reports coming back that the treatment is working, proves that the drug is NOT schedule 1.
Just another do as I say not as I do law.
Watch "The Union" for some insights, watch "Reefer Madness" for some laughs at what people believed from the propaganda machine.
This is a total outrage. The IRS catigorically refuses to go after any illegal alien or illegal alien gangs for tax evasion when other law enforcement agencies have them dead to rights and in custody. The IRS has never, and I emphisize never, brought charges of tax evasion against illegal aliens or collected a dime off their working for wages, or selling drugs, prostitution, or human smuggling operations and they go after legitamate medical marijuana distributors?In the words of an IRS employee directly to me, "We need to blow the place up and start over."
The IRS does NOT want to go after Illegal Aliens, because NOT only does the money withheld from their paycheck get to stay with the government, so does the portions which the employer MATCHES! Double Income - totally tax FREE to the IRS. These aliens will never file a return or get their money back,
1. Illegal Aliens do not have Social Security Numbers. They aren't going to fill out a return and basically yell "LOOK AT ME, I'M ILLEGAL!" How are they supposed to go after them?
2. They DO, however, go after employers who are hiring illegal aliens, but they are not allowed to disclose what is going on by law. Besides that, they'd have to find that information in an audit first.
3. A line like that would get an IRS employee fired.
Does the IRS have problems? Yes, of course. Is that reason to blame them for all of your unrelated problems on them? No.
You think the global elite is going to watch a bunch of small time entrepreneurs cut into their drug dealing profits....YEAH RIGHT!....
Hell No! they won't you got that right money makes the world go round, God Bless the USA the best government money can buy.