April 23, 2019
Marijuana has been legalized for recreational use in some ten states and the District of Columbia, but possession is still a crime under federal law. Which doesn’t mean the feds aren’t making a few bucks out of the weed.
According to this article at the Quartz website, the U.S. government collected $4.7 billion in taxes from cannabis companies in 2017. Though it’s illegal, the companies that are doing business in cannabis still have to pay federal income taxes on gross income, and they are not allowed deductions of credits.
Seven states also tax pot. Alaska, for instance, imposes a tax of $50 per ounce, half of which is then deposited in the state’s general fund, and the other half devoted to crime reduction programs.