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Comment by cronix | Hacker News Reader

Now that half the states have already legalized it and reaps a ton in tax revenue, the fed wants their cut at a time when tax revenue is drying up. These states have been ignoring federal law for a very long time now, without consequence, so there might as well not be that law if you're not going to actually enforce it.

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I'm not sure the federal tax revenue is the big motivator here. Currently most (all?) cannabis operations are paying MASSIVE federal taxes under rule 280E. Federally legalizing should substantially reduce the effective federal tax rate on the cannabis industry.

Now, you might offset that by having MORE cannabis business revenue nationally, instead of just in the legalized states, but don't think the IRS isn't getting their piece of the pie already....

Money doesn't seem to be a motivating factor for Democrats. I believe decriminalizing marijuana related crimes is likely higher on the agenda.

Regardless of what states have done, without Federal legalization, marijuana businesses are cut off from most financial products provided by the "mainstream" financial institutions, including aid from the Federal Government during emergencies (e.g. the current pandemic). So this step would be quite impactful.

Cannabis was considered an essential industry in Oregon during the pandemic. They, along with state run alcohol stores, were exempt from shutdowns. Recreational drugs are essential here. Most states that have legalized it also have a component for relief on past non-violent crimes, although true, doesn't affect the federal level crimes (which they hardly prosecute anymore since legalization - you have to be very egregious).

When Oregon first started its recreational program in 2016, they collected about $20M in taxes [1]. In 2020, it was $133M. Other states are similar. It has a lot to do with $$$, it always does. Politicians sell ideas using emotions, but we have to dig deeper.

[1] https://www.oregon.gov/DOR/programs/gov-research/Documents/F...

It's essential because people aren't going to stop doing recreational drugs when you tell them they need to stay in their houses. You just push them to using the informal economy which won't comply with spread prevention guidelines.

They tried to declare dispensaries and liquor stores non-essential in CO, and the run on stores caused a couple super spreader events within hours before they reversed their decision. A brewery near by made some awesome glasses that say "Denver Prohibition 3/23/2020 3PM - 3/23/2020 5PM Never Forget".

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