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Leonard I. Frieling Aug. 10, 2022

Feds Tax Pot 10%

Very interesting IMO.   Feds tax pot 10% in a clever sick way.  Federal employee withholding tax quarterlies must be paid by bank wire transfer.  IF they are paid in cash, say for an industry that cannot get bank accounts,  they can be paid at ONE location in the State of Colorado (a somewhat large state), by appointment only.  Bad enough.  THEN, because the payment is cash and not by bank transfer, there is a 10% IRS penalty.  I believe this is the Fed's way of keeping pot illegal while imposing a 10% tax on the business.

 Our Colorado NORML exec director Rachelle Gillette has filed suit against the IRS over this issue.  Many of us would love to see the feds legalize and tax marijuana.  Steal the 10% legally!  Most interesting, as pointed out in the complaint, is that the alternatives suggested by the IRS to solve the problem to avoid the penalty amount to fairly possible money laundering.   The  IRS says "pass the money through a third person."  Sure sounds like at least a suggestion of money laundering. Does that sound like an overly-oppressive government?  I'm NOT suggesting revolution, subversion, or any other extraordinary behavior.  I do think the lawsuit is a marvelous way to bring this issue before the public eye.

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