I’ve learned a lot from my friend Jon Caulkins (we were among eight co-authors on the RAND report for Vermont, and he’s helped and encouraged me over the years). Jon worries about for-profit marijuana businesses, and prefers non-profit businesses. Fair enough, but let’s think about practicalities. In an article in the National Review, “Against a Weed Industry,” Jon suggests, for the eight states where recreational cannabis is legal, “The Justice Department can simply send a letter warning that if the company does not shut down within a reasonable time, its owners will be arrested and its assets seized. . . . The Trump administration could phase out those for-profit businesses in favor of nonprofit organizations by issuing a new memo. . . . Shutting down state-licensed businesses could feed the black market, but not if nonprofit organizations are allowed to take their place.”
But I can’t see that happening. It would be very hard, politically and practically, to replace for-profit cannabis sellers “in favor of” non-profit sellers. Getting from here to there is not easy. Continue reading “Forced conversion of marijuana businesses to non-profit? I doubt it.”
OK, they call it a fee, but it looks like a tax to me. New York is collecting $100 million from opioid sellers -- with a few exemptions, like for Hospice use.
Here's the law: http://nyassembly.gov/leg/?default_fld=&leg_video=&bn=S07507&term=2017&Summary=Y&Actions=Y&Text=Y, mentioned to me by Katherine "KT" Kramer of ASTHO.
Continue reading "New York State’s $100 Million Opioid . . . Tax"
My new article in The Hill has this: “Make expenses of selling opioids non-deductible on income tax returns. That is, sellers could not deduct the costs of those gifts, junkets, dinners, and salespeople’s salaries on their income tax returns. Making drug companies’ marketing efforts non-tax-deductible is a move, even if a small one, in the right direction. And legitimate users shouldn’t bear any of the tax burden. What’s not to like?” The federal government can do this, and each state can, too, for its state income tax returns.
The Sacramento Bee says California marijuana sales in the early days of legalization are under state projections, but I don’t buy the analysis. Continue reading “California marijuana sales are on track, at least”
Pat Oglesby, founder and director of the North Carolina-based Center for New Revenue, announced plans to disband the non-profit, which has focused on revenue from cannabis, and to invest in hemp farming.
“It’s federally legal,” said Oglesby, “and there’s a lot of money to be made — without tax shenanigans. I have lots of friends in the cannabis community. Most of them are in the recreational space, but some of them know plenty about hemp, and they are helping me navigate this transition.”
“Maybe someone else will take up the causes of thoughtful marijuana taxation, of government cannabis sales, and of reform rather than repeal of Tax Code section 280E,” he said. “It’s been a good run, but at age 70, I’ve had my say.” Continue reading “Center for New Revenue disbands; founder to invest in hemp farming”