Should the Federal Gov’t Legalize & Tax Marijuana? (S. 776)
Do you support or oppose this bill?
What is S. 776?
(Updated May 25, 2021)
This bill — the Marijuana Revenue and Regulation Act — would legalize marijuana by taking it off the list of controlled substance, in addition to imposing a 25% excise tax on recreational marijuana sales and letting states develop regulate marijuana as they do alcohol. The Controlled Substances Act would be amended to impose penalties for shipping or transporting marijuana into any state or jurisdiction where it is illegal. It’d also be illegal to sell more than one ounce of marijuana in a single retail transaction.
Industrial hemp and FDA-approved therapeutic items containing marijuana would be exempt from the excise tax, as would products used for research or nonconsumption. The transfer of marijuana products between production, import, and export facilities would be exempt from the tax and a credit or refund must be issued for products that are withdrawn from the market, lost, or destroyed.
Producers, importers, and exporters of marijuana products would be required to:
Obtain a permit and a bond covering tax liability from the Treasury Dept. prior to beginning operations;
Meet recordkeeping requirements;
Comply with certain policies and restrictions regarding packaging, labeling, and advertising.
Argument in favor
The federal government should legalize and tax marijuana as it’s a substance no more harmful than alcohol or tobacco that would stimulate legal economic activity and reduce the strain on law enforcement resources. States should be able to regulate marijuana how they see fit without federal overreach.
Argument opposed
Marijuana is a harmful substance that serves as a gateway to harder drugs — the federal government shouldn’t legalize it. Letting states make their own decisions about legal marijuana would be a mistake that’d be seen as a public health mistake as the impact of marijuana use becomes clearer.
Impact
Marijuana users and businesses; states; and relevant federal agencies.
Cost of S. 776
A CBO cost estimate is unavailable.
Additional Info
In-Depth: Sponsoring Sen. Ron Wyden (D-OR) introduced this bill to legalize, tax, and regulate marijuana in conjunction with two other proposals to lessen the gap between federal and state marijuana policies and let marijuana businesses access tax credits and deductions:
“The federal government must respect the decision Oregonians made at the polls and allow law-abiding marijuana. This three-step approach will spur job growth and boost our economy all while ensuring the industry is being held to a fair standard.”
Media:
Summary by Eric Revell
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