The 2013 Cole Memorandum, recently rescinded by Attorney General Jeff Sessions, ensured a hands-off approach from the federal government in states with “strong and effective regulatory and enforcement systems” for marijuana. Through his decision to rescind this common-sense policy, Sessions has undermined states’ rights and disrupted their efforts to implement and execute marijuana enforcement policies.
The attorney general’s action is a complete contradiction to the federalist model of government he has held so dear in previous roles. Furthermore, this decision only benefits criminal enterprises – gangs, cartels, drug runners – whose illegal operations suffer when legal marijuana businesses are allowed to operate. As long as legitimate businesses are financially and legally stonewalled from the free market, these drug cartels and drug traffickers will fill the void and spread violence, instability and dangerous unregulated substances in communities across the nation.
Legitimate businesses associated with the sale of marijuana and operating in compliance with state laws are being penalized by the administration’s irresponsible disregard for states’ rights, as well as inadequacies in federal laws. Despite the lawfulness of their enterprises, these business owners find themselves financially hamstrung by an antiquated section of the tax code that prohibits them from deducting business expenses from their taxes.
To address this significantly disproportionate tax burden, I introduced the “Small Business Tax Equity Act” with Rep. Earl Blumenauer (D-Ore.). This bill will create an exemption within the Internal Revenue Code (IRC) and provide tax parity to marijuana businesses operating in compliance with state law. By treating these enterprises with equity and allowing them to expand and thrive, I am confident criminal activity and tax evasion will diminish substantially and opportunities for legal actors will arise. While the Small Business Tax Equity Act takes an important step toward fulfilling the will of the American people, it does not surmount the blatant federal overreach of Attorney General Jeff Sessions.
credit:curbelo.house.gov
