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Federal lawsuit: Can Washington tax marijuana? (i.e. the state)
Associated Press ^ | May 9, 2014 2:47 PM EDT | Gene Johnson

Posted on 05/09/2014 11:55:59 AM PDT by Olog-hai

A federal lawsuit is challenging Washington state’s authority to tax marijuana as long as marijuana remains illegal under federal law.

The case arises from the state’s attempt to collect sales taxes from a medical marijuana dispensary. But lawyer Douglas Hiatt, who filed it late Thursday, said it could throw a wrench in Washington’s plans for collecting taxes on recreational marijuana, too.

The author of Washington’s recreational pot law, Alison Holcomb, disagreed. She doesn’t expect the lawsuit to get very far. …

(Excerpt) Read more at hosted.ap.org ...


TOPICS: Business/Economy; Government; News/Current Events; US: Washington
KEYWORDS: cannabis; federallawsuit; marijuana; tax

1 posted on 05/09/2014 11:55:59 AM PDT by Olog-hai
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To: Olog-hai

Pot tax is just the cartel’s cut. States are now getting into the illegal drug business.

The more experienced “unlicensed pharmaceutical suppliers” are already penetrating Colorado’s drug scene, and are looking to do the same in Washington.


2 posted on 05/09/2014 12:09:46 PM PDT by wrench
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To: Olog-hai

There already is a pot tax. Its called a sin tax and it’s
levied by the feds.


3 posted on 05/09/2014 12:16:09 PM PDT by Slambat
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To: wrench
People forget that the war on drugs really begin the day prohibition ended. It isn't nice to point this out, but the Washington cartel always looks after their own.

If the states were allowed to collect taxes off pot sales, it will give more of them the incentive to legalize it and then where would the Washington cartel employ their war on drugs warriors?

The Washington cartel will be fine with legalization as soon as they have their own infrastructure in place to collect the revenue from it. They don't want a bunch of pissant states elbowing in on their revenue stream.

The Democrats get all these benefits here:

  1. Legalized pot kills brain cells and erases memory.
  2. Fewer brain cells + faded memories = more Democrat voters.
  3. More drug use and more Democrat voters = More social problems.
  4. More social problems = more excuses to grow government.
  5. Bigger government = more power and more control.
What's not to like?
4 posted on 05/09/2014 12:28:00 PM PDT by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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To: Olog-hai

As is the case in California, the Washington dispensaries are caught in a perpetual Catch-22. The owners will always be in violation of Federal law, in spite of being in compliance with State law.

“Hiatt is representing the dispensary’s operator, Martin Nickerson, who is simultaneously being prosecuted criminally for marijuana distribution and targeted by the state Department of Revenue for not collecting and remitting taxes on the pot he was allegedly distributing. Nickerson can’t pay the tax without incriminating himself in the criminal case, in violation of his constitutional rights, Hiatt argued.”

The Federal law is also a Catch-22 situation. If the federal laws are changed, that puts the US out of kilter with the UN mandates on the ‘war on drugs.’ If the laws remain the same, they are out of kilter with the citizens of the states. So the dispensaries are up against the UN itself. Quite a hill to climb.


5 posted on 05/09/2014 12:37:16 PM PDT by blueplum
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To: Olog-hai
Stupid lawsuit.

Two words: Al Capone. Capone ran a criminal enterprise but still owed the tax on it. And that's why he went to prison. The Untouchables never got their man. The IRS did.

6 posted on 05/09/2014 12:39:00 PM PDT by colorado tanker
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To: Vigilanteman
The Democrats get all these benefits here:

Your claims 1 & 2 are nothing more than propaganda and lies. I will fight just as hard against those that would claim moral authority to legislate morality as I will someone who would attempt to legislate immorality.

7 posted on 05/09/2014 12:46:24 PM PDT by dware (3 prohibited topics in mixed company: politics, religion and operating systems...)
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To: Olog-hai

This came up before, years ago. I believe Arizona passed a law that required marijuana to have tax stamps on it, like cigarettes. The idea was that when arrested for marijuana, if it did not have such tax stamps, they were also guilty of state tax evasion.

A judge threw that out, however, saying in effect that the state could not tax illegal goods.

Oddly enough, many people bought the marijuana tax stamps as a novelty item, and they are now collectibles.


8 posted on 05/09/2014 12:52:57 PM PDT by yefragetuwrabrumuy (WoT News: Rantburg.com)
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To: yefragetuwrabrumuy

I’m sure the Pot guy looking at prison for selling grass is gonna declare his net profit for taxation from all those valid receipts from all his customers.
I really think when the MJ cartel in CO starts growing it’s own 6 plants per person the sales will eventually be nil except from those coming in from out of state to get high.


9 posted on 05/09/2014 1:01:21 PM PDT by DocJhn
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To: dware

Tell that to anyone who has ever known a stoner. I’m not talking about the person who takes an occasional drag for medical reasons or even for recreational use. I’m talking about the dopey, lazy stoner who cares about nothing else.


10 posted on 05/09/2014 1:50:30 PM PDT by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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To: Vigilanteman

Tell that to the alcoholic.


11 posted on 05/09/2014 1:54:02 PM PDT by HiTech RedNeck (Embrace the Lion of Judah and He will roar for you and teach you to roar too. See my page.)
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To: DocJhn

The purpose was in effect for double prosecution. That anyone arrested with enough to be charged as a dealer could also be charged for tax evasion. It was not a “in good faith” law.


12 posted on 05/09/2014 2:41:03 PM PDT by yefragetuwrabrumuy (WoT News: Rantburg.com)
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To: Vigilanteman
Bigger government = more power and more control.

Remind me again.

Where can I find evidence that the Republican party is in favor of a smaller, less intrusive government?

13 posted on 05/09/2014 4:12:44 PM PDT by Ol' Dan Tucker (People should not be afraid of the government. Government should be afraid of the people)
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To: colorado tanker
The Untouchables never got their man. The IRS did.

The IRS is an bureau of the Treasury Dept as were the Untouchables, a.k.a. BATF.

The Treasury Dept. got their man by out-flanking the enemy.

14 posted on 05/09/2014 4:17:08 PM PDT by Ol' Dan Tucker (People should not be afraid of the government. Government should be afraid of the people)
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To: colorado tanker

The IRS man was part and parcel of the untouchables..... he was one


15 posted on 05/09/2014 4:20:24 PM PDT by bert ((K.E. N.P. N.C. +12 ..... History is a process, not an event)
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To: Vigilanteman
Tell that to anyone who has ever known a stoner. I’m not talking about the person who takes an occasional drag for medical reasons or even for recreational use. I’m talking about the dopey, lazy stoner who cares about nothing else.

The laws do not differentiate between the two, even if you do.

Like the anti-gunner, the anti-drug laws would have everyone believe that mere presence of a gun will always cause death and mayhem, even if it is just laying there unloaded.

Does everyone who uses pot become a dopey, lazy stoner? Or, are there some who are able to use it responsibly? Should be ban alcohol because some become winos? Should be ban guns because some use them to commit crime?

16 posted on 05/09/2014 4:24:22 PM PDT by Ol' Dan Tucker (People should not be afraid of the government. Government should be afraid of the people)
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