With marijuana on the verge of being legal in several states, the U.S. government is still make billions of dollars by keeping weed illegal.
The federal tax code (Section 280E) was enacted in the 1980s to close a loophole from allowing drug traffickers and dealers to make claims on the federal tax returns such as travel costs and scales.
The 280E still applies to marijuana businesses where weed is legalize in specific states. This prevents marijuana businesses from writing off business expenses (deductions that are available to legal businesses).
According to Congressional Joint Committee on Taxation, the IRS will be able to bank an additional $5 billion between now and 2027 by keeping cannabis illegal.
This can be a major problem for the legalization of marijuana in most states.
The government still make profits from weed by arresting marijuana users who utilize the drug in prohibited states.
Everything you need to know about marijuana from Livin' Weedy.