Document Type
Article
Publication Date
6-2020
Abstract
Congress enacted § 280E of the Internal Revenue Code in 1982 to punish businesses engaged in illegal drug trafficking, including marijuana. Section 280E denies all credits and deductions, including ordinary business expenses, from gross income of businesses illegally trafficking in a Schedule I or II controlled substance. This provision violates the principle that the tax code should foster a consistent treatment of income, regardless of source; and that the income tax is ill-used for punitive measures. Now that marijuana has been legalized in some form in at least 46 states for therapeutic purposes, this federal tax penalty transgresses principles of federalism. Recent scientific studies that have established the medical effectiveness of marijuana for certain conditions, further demonstrates that § 280E serves little legitimate purpose.
Recommended Citation
Kahn, Douglas A. and Howard Bromberg. "Medical Marijuana, Taxation, and Internal Revenue Code Section 280E." National Tax Journal 73, no. 2 (2020): 593-616. DOI: https://doi.org/10.17310/ntj.2020.2.09
Included in
Criminal Law Commons, Food and Drug Law Commons, Health Law and Policy Commons, Tax Law Commons
Comments
© 2020 National Tax Association. All rights reserved. Reproduced with permission. Available at: https://doi.org/10.17310/ntj.2020.2.09