California's government can't boil water without burning it:
California’s cannabis industry has faced huge economic hurdles in its first four years of legal sales. The state’s complicated cannabis regulations and high taxes add costs to legal operators, while widespread illegal farms and retailers undercuts legitimate companies. Limited access to banking means these companies pay exorbitant fees for simple banking services and have almost no access to loans. Federal law blocks pot companies from deducting most business taxes from their federal taxes, making pot businesses pay an effective federal tax rate as high as 80%.
These factors have come together to make California a painful place to run a legal pot business. The majority of small legacy cannabis farms are on their way out of business and even the country’s biggest cannabis companies are leaving the state.
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