The U.S. Justice Department is moving to reclassify marijuana as a less dangerous drug. The historical drug policy change could end up saving cannabis businesses big bucks.
Marijuana is currently classified as a “Schedule 1” drug alongside heroin and LSD, by being deemed as having a high potential for abuse.
But the U.S. Drug Enforcement Administration is asking to move marijuana to Schedule III, alongside ketamine and some anabolic steroids
The DEA’s proposal, which still must be reviewed by the White House Office of Management and Budget, would recognize the medical uses of cannabis and acknowledge it has less potential for abuse than some of the nation’s most dangerous drugs.
The reclassification would not federally legalize marijuana outright for recreational use.
Reclassification would eliminate Maryland tax code
Christina Betancourt Johnson, the CEO of Standard Wellness Maryland, said the reclassification would allow more funding for medical research on cannabis and its effects on people.
There’s also a major financial impact that cannabis businesses could feel in Maryland.
The national reclassification would eliminate the Section 280E tax code, which prohibits legal cannabis companies from deducting what would otherwise be ordinary business expenses.
“You might have an effective 80 percent tax rate for every dollar earned,” Johnson said. “Whereas competitive businesses in any other industry would have a 30ish percent tax rate. So, it’s very burdensome.”
Click here to read the rest of the article written by Alexus Davila over at WJZ CBS News
