By Kinsey Grant
Full adult use legalization of cannabis could offer one fat cushion to the government’s coffers.
“Under the new business tax rate of 21%, the Trump tax cuts will come as welcome relief to cannabis business owners who already face tax hurdles because of 280E,” New Frontier wrote. Section 280E of the Internal Revenue Service’s code prevents state-legal marijuana companies from deducting what would typically be considered everyday business expenses from their total income. The rule means that cannabis businesses face effective tax rates of as high as 70%.
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