Marijuana Profits Up in Smoke Under IRS Rules

Marijuana Profits Up in Smoke Under IRS Rules

In this Sept. 26, 2014 file photo, smaller-dose pot-infused cookies, called the Rookie Cookie, sit on the packaging table at The Growing Kitchen, in Boulder. Colorado health officials want to ban many edible forms of marijuana, including brownies, cookies and most candies, limiting sales of pot-infused food to lozenges and some liquids. (AP Photo/Brennan Linsley, File)
In this Sept. 26, 2014 file photo, smaller-dose pot-infused cookies, called the Rookie Cookie, sit on the packaging table at The Growing Kitchen, in Boulder, CO. (AP Photo/Brennan Linsley, File)

 

(USA Today) – Voters in Oregon, Alaska, and Washington, D.C., will decide Tuesday whether to legalize the sale of recreational marijuana. But any new pot shops that voters approve 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.

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