Puff, Puff, Tax: Internal Revenue Code Section 280E Penalizes State-Sanctioned Marijuana Companies and Undermines the Ability-To-Pay Principle

Joseph E. Thomas

No ha468_v1, LawArchive from Center for Open Science

Abstract: This Comment argues that Internal Revenue Code § 280E unfairly penalizes state-licensed marijuana businesses by denying ordinary business deductions and taxing them on amounts that may exceed their actual profits. Examining the history of § 280E and recent challenges by marijuana dispensaries, the Comment contends that the provision undermines the ability-to-pay principle and threatens the viability of legitimate cannabis businesses operating under state law. It concludes that Congress should amend or repeal § 280E as applied to state-sanctioned marijuana companies. [This abstract was written by Microsoft Copilot, a generative artificial intelligence.]

Date: 2026-09-28
New Economics Papers: this item is included in nep-pbe
References: Add references at CitEc
Citations:

Downloads: (external link)
https://osf.io/download/6ab68abea003ff09e1f19260/

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:osf:lawarc:ha468_v1

DOI: 10.31228/osf.io/ha468_v1

Access Statistics for this paper

More papers in LawArchive from Center for Open Science
Bibliographic data for series maintained by OSF ().