Cannabis Executives Channel Boston Tea Party to Protest Taxation Without Representation

In a bold and symbolic move, executives from Massachusetts-based cannabis company MariMed donned colonial attire and took to Boston Harbor to reenact the historic Boston Tea Party. Their aim? To protest the IRS’s Section 280E, a tax code they argue unfairly burdens state-legal cannabis businesses.

A Modern-Day Tea Party

On July 12, 2023, aboard the schooner Liberty Star, MariMed’s team, dressed in 18th-century garb, tossed wooden boxes labeled “weed” into the harbor. This act mirrored the 1773 protest against British taxation, highlighting their stance against current federal tax policies that prohibit cannabis businesses from deducting standard business expenses.

Understanding Section 280E

Enacted in the 1980s to prevent illicit drug dealers from claiming business deductions, Section 280E now impacts legal cannabis operators due to marijuana’s Schedule I status. This results in significantly higher tax rates for these businesses, affecting their profitability and sustainability.

Voices from the Protest

Jon Levine, CEO of MariMed, emphasized the protest’s purpose:

“Section 280E is unfair and hampers companies striving to make cannabis accessible for consumers and medical cannabis patients in all legal states. It should be repealed.”

Lucas McCann, chief science officer at CannDelta, added context:

“Rooted in the 1980s, this outdated tax legislation was crafted to prevent drug dealers from claiming any business expenses on their taxes.”

The Path Forward

While legislative efforts to reform federal cannabis policies continue, Section 280E remains a significant hurdle. Advocates hope that symbolic actions like MariMed’s protest will draw attention to the issue and spur policy changes that align tax regulations with the evolving legal landscape of cannabis.

As the cannabis industry grows, stakeholders are increasingly vocal about the need for equitable tax treatment. MariMed’s reenactment serves as a poignant reminder of the ongoing struggle against “taxation without representation” in the modern era.

Sources

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