> taxing the legal pot industry so highly that it was miles cheaper to buy stuff illegally no the corner
the legal pot industry's problem is it's impossible for it to turn a profit. they can't deduct operating expenses from their tax liability like other businesses can, because of federal law. items like rent, payroll.
they also can't use the same systems of credit management and bank accounts, because of federal law.
The legal pot industry’s problem is that it’s a legal no-man’s-land because pot is actually illegal at a federal level but states just ignore it and the government ignores them ignoring it. It should be legalized at a federal level because that’s already true de facto
Incidentally, the second that happens Altria/BAT/whoever will swoop in and make it a consumer product. This will probably have a serious impact on mom and pop guys, but also cartels
As someone who runs four stores in the legal pot industry in Oklahoma and turns a profit yeah not true. You can make plenty of money playing by State rules. If a company has expansion plans that rely on the interstate commerce clause then yes the feds are your problem.
The bank accounts thing also makes them bigger targets for theft, because of all the extra cash that stores end up handling when they can't use standard payment methods.
Just anecdotally, to append to this a bit, actually the last time I went on vacation I went to a dispensary, only for the same spot to pop up in the trip's group chat a week or two later because the same spot had gotten hit with an armed robbery. (Or at least attempted? I forget. Anyway...)
the legal pot industry's problem is it's impossible for it to turn a profit. they can't deduct operating expenses from their tax liability like other businesses can, because of federal law. items like rent, payroll.
they also can't use the same systems of credit management and bank accounts, because of federal law.
state taxes are a very minor part of the story.