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house Bill H.R. 1014

Taxing Recreational Marijuana Sales

Argument in favor

By establishing an excise tax on recreational marijuana and an occupational tax on marijuana businesses employees, the federal government can bring in much needed tax revenue to help fund the government.

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10/19/2015
"I suspect I would vote yes. And I would vote yes because I am seeing in this country too many lives being destroyed for non-violent offenses. We have a criminal justice system that lets CEOs on Wall Street walk away and yet we are imprisoning or giving jail sentences to young people who are smoking marijuana." [huffingtonpost.com]
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DonaldTrump's Opinion
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10/19/2015
"We’re losing badly the war on drugs. You have to legalize drugs to win that war. You have to take the profit away from these drug czars.” [thedailybeast.com]
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Tafinzer's Opinion
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03/01/2017
Legalize it. Tax it. let's get real about keeping people out of prison and from being hassled by the police for a drug that's far less dangerous than alcohol. Marijuana is also medicinally viable. It needs to be classified properly.
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Argument opposed

It’s hypocritical for the federal government to collect taxes on a substance it doesn’t recognize as legal. It should either make marijuana legal at the federal level, or not collect taxes on the sale of it in states that have legalized it.

John's Opinion
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10/15/2015
NO NO NO!!! If you want to tax it, then you need to make it legal at the Federal level. Otherwise, you put users who are "legal" at the State level in a catch 22 of Federal crimes - if they file their taxes admitting to use and / or sale, they can be prosecuted Federally. If they don't file their taxes they can be prosecuted for tax evasion!! Outrageous!
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Brittney's Opinion
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10/20/2015
The federal government should first legalize what it would potentially tax. The success that Colorado and Washington's statewide marijuana tax prove it a valuable source of funding. However it would be unethical for the federal level to monetize before legalizing marijuana.
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Adrian's Opinion
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10/16/2015
Until they stop arresting people for possessing it, the government has no right to tax marijuana.
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bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
  • The house has not voted
      house Committees
      Committee on Ways and Means
    IntroducedFebruary 20th, 2015

What is House Bill H.R. 1014?

This bill would impose an excise tax on the sale of recreational weed by producers or importers. This tax would initially be set at 10 percent, though it would increase by increments of 5 percent every two years to a total tax rate of 25 percent.

While this bill does create a framework for taxing marijuana — it does not change federal law to make the substance legal. The bill was introduced in conjunction with H.R. 1013 — a bill to regulate marijuana like alcohol.

Recreational marijuana businesses would also be responsible for an occupational tax. It would cover each person who is engaged in the marijuana enterprise — meaning they are a producer, importer, manufacturer, distributor, retailer or any person who participates in a business activity involving the handling of marijuana and marijuana products. The tax would be $1000 per year for producers, importers, and manufacturers while other employees would have a $500 per year tax imposed.

Any person who engages in a marijuana enterprise would be required to obtain a permit to undertake that business.

Failure to comply with this legislation’s requirements would lead to civil penalties being imposed, and criminal penalties for a marijuana enterprise that operates without a permit.

Impact

People who buy and use recreational marijuana, employees and owners of businesses in the recreational marijuana industry, states that have legalized marijuana, and the IRS.

Cost of House Bill H.R. 1014

A CBO cost estimate is unavailable.

More Information

In-Depth: Sponsoring Rep. Earl Blumenauer (D-OR) introduced this bill in conjunction with legislation authored by Rep. Jared Polis (D-CO) that would end the federal prohibition on marijuana. Rep. Blumenauer drafted this bill because he believes:

“It’s time for the federal government to chart a new path forward for marijuana. Together these bills create a federal framework to legalize, regulate, and tax marijuana, much like we treat alcohol and tobacco. The federal prohibition of marijuana has been a failure, wasting tax dollars and ruining countless lives. As more states move to legalize marijuana as Oregon, Colorado, Washington, and Alaska have done, it’s imperative that the federal government become a full partner in building a workable and safe framework.”

Thus far, Rep. Blumenauer’s legislation has gained seven cosponsors in the House, all of whom are Democrats.


Of Note: So far, marijuana has been legalized for recreational use in four states plus the District of Columbia. Colorado and Washington passed measures legalizing marijuana in 2012, while Alaska, Oregon, and the District of Columbia followed suit in 2014.

There are five more states that are likely to consider marijuana legalization measures in 2016, including Arizona, California, Maine, Massachusetts, and Nevada. In total, there are 13 states where initiatives or constitutional amendments have been proposed and may lead to voters having their say on the issue of legalization in 2016.


Media:

Summary by Eric Revell
(Photo Credit: Flickr user Dank Depot)

AKA

Marijuana Tax Revenue Act of 2015

Official Title

To amend the Internal Revenue Code of 1986 to provide for the taxation of marijuana, and for other purposes.

    "I suspect I would vote yes. And I would vote yes because I am seeing in this country too many lives being destroyed for non-violent offenses. We have a criminal justice system that lets CEOs on Wall Street walk away and yet we are imprisoning or giving jail sentences to young people who are smoking marijuana." [huffingtonpost.com]
    Like (884)
    Follow
    Share
    NO NO NO!!! If you want to tax it, then you need to make it legal at the Federal level. Otherwise, you put users who are "legal" at the State level in a catch 22 of Federal crimes - if they file their taxes admitting to use and / or sale, they can be prosecuted Federally. If they don't file their taxes they can be prosecuted for tax evasion!! Outrageous!
    Like (236)
    Follow
    Share
    "We’re losing badly the war on drugs. You have to legalize drugs to win that war. You have to take the profit away from these drug czars.” [thedailybeast.com]
    Like (567)
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    "I understand this is important to you," he says, "but, you know, you should be thinking about climate change, the economy, jobs, war and peace. Maybe, way at the bottom, you should be thinking about marijuana." [reason.com]
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    “I’m open to it.” [bostonglobe.com]
    Like (105)
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    The federal government should first legalize what it would potentially tax. The success that Colorado and Washington's statewide marijuana tax prove it a valuable source of funding. However it would be unethical for the federal level to monetize before legalizing marijuana.
    Like (55)
    Follow
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    Legalize it. Tax it. let's get real about keeping people out of prison and from being hassled by the police for a drug that's far less dangerous than alcohol. Marijuana is also medicinally viable. It needs to be classified properly.
    Like (53)
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    Not until it's legal. To consider financial benefit from the sale of marijuana while opposing it's sale is insanity! Either legalize it nationwide & tax it like alcohol & tobacco OR stop talking about taxation completely. It is so like the opposition to abortion coupled with the unwillingness to house, feed or educate children!
    Like (48)
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    Until they stop arresting people for possessing it, the government has no right to tax marijuana.
    Like (41)
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    They should not tax it until it's legal at the federal level, whatever happened to no taxation without representation, marijuana needs to be legal to be represented as such, you can't tax things that are illegal on the federal level
    Like (19)
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    Having a tax on pot will benefit the government with an increase in revenue that can be used to improve our nation. By the end of 2016, possibly 20% of the states will have legalized pot, having it taxed will benefit the government somewhat. It's better to have this tax approved before the possible federal legalization of pot as well.
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    With many of the fuel taxes not producing adequate funds for the government, new revenue streams need to be explored. Legalizing & taxing recreational marijuana would increase government coffers to address other, important issues; allow law enforcement & government agencies to refocus on other directives; and has the added benefit of opening another avenue upon which businesses can capitalize.
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    We tax all alcohol drinking products and cigarette products so let's tax this right along with them. Remember it is a luxury item.
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    Although the idea is good, we cannot turn into a country advocating the use of marijuana now or anytime soon. It will only hurt our people, work ethics, and may introduce them into much worse drugs
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    Should not be taxed until nation wide if the nation does not recognize it as legal
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    Use the money to fix the roads and pay for drug and alcohol rehabilitation programs.
    Like (6)
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    Marijuana should be legalised to take away the power of the drug kingpins currently running a monopoly on it. If in the process, money can be raised for important federal programs, this solution is perfect.
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    The war on drugs is costly and ineffective. NC could bring in a lot of revenue by replacing tobacco farms with marijuana farming and selling it with a state tax.
    Like (5)
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    And legalized
    Like (5)
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    Make it legal nationally and tax it. Marijuana is no worse than alcohol, so just keep moderation laws in place and America could be looking at a marvelous new source of revenue.
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