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Marijuana profits up in smoke under IRS rules

Posted On 07 Nov 2014
By : superadmin
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Voters in Oregon, Alaska and Washington, D.C., legalized recreational marijuana Tuesday.

But without the support of the U.S. Congress, any of the new, voter-approved pot shops may not be able to survive a drug war-era tax code that already threatens many businesses in Colorado and Washington state.

Under this tax code the federal government stands to make more money from the sale of marijuana than those legally selling it. And that could be enough to shut down many shops.

“It’s almost like they want us to fail,” said Mitch Woolhiser, while walking through his store called Northern Lights Cannabis Co. in Edgewater, Colo. “Everything I do is aimed at keeping us in business because if I don’t, then (the feds) win. And I’m not going to let them win.”

Woolhiser believes the federal government is actively seeking to undermine his business.

Full article and video at USAtoday

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