The potential of rescheduling and removing Tax Rule 280E could boost profits for U.S. businesses. However, Zuanic and Associates' latest report reveals complexities and overlooked consequences. What is the best option for unlocking the cannabis industry's potential: exploring exemptions or legislative change?
Rescheduling MMJ: FDA And Pharma Implications
Tax Rule 280E poses a considerable obstacle to cannabis companies, forcing them to pay income tax on gross profits and resulting in an astronomical effective tax rate of 70% for many US plant-touching businesses.
While the removal of 280E through cannabis rescheduling appears attractive, Z&A cautions against embracing this narrative without considering its potential "Pandora's Box" of consequences.
Rescheduling medical marijuana (MMJ) would indeed make it federally legal, but it could also usher in stricter FDA regulations and limit prescription accessibility for doctors.
Additionally, it might lead to the entrance of pharmaceutical companies, altering the industry's dynamics significantly.
“Moving MMJ to Schedule II or III would make MMJ federally legal with all that implies: FDA regulation, likely tougher for Drs to prescribe, ...Full story available on Benzinga.com
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