NORML suggests 280E compromise

“NORML believes that is essential that marijuana businesses be able to take tax deductions for standard expenses such as rent and employee compensation and benefits.  As part of a compromise package allowing those deductions, NORML would support the continuation of non-tax-deductibility of marijuana business advertising expenses.  For some citizens, advertising is a distraction, a red flag that can cause them to hesitate to support the sound policy of legalization.

 “Allowing deductions for rent and employee costs would help the bottom line of small businesses and give incentives for further hiring, while acting as a preemptive move against well funded corporate controlled marijuana companies, which can afford extensive advertising.  This development would encourage the proliferation of a more diverse array of smaller businesses, as opposed to the consolidation by large corporate interests.  An industry dominated by smaller businesses in turn would create more competition leading to higher quality and better priced products for the consumer.”

Erik Altieri, the new head of NORMLhttp://norml.org, sent me that statement, and authorized me to publish it.

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That’s NORML’s view; here’s a tax man’s in-depth look at 280E: https://www.brookings.edu/blog/fixgov/2015/12/18/how-bob-dole-got-america-addicted-to-marijuana-taxes/

 

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Author: patoglesby

From 1982 to 1990, I worked in tax policy for Committees of the United States Congress. In recent years, I was Adjunct Lecturer at UNC-Chapel Hill's Business School and then Adjunct Professor at its Law School.

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