Politico: Taxing the Pot

So how might this actually be a tax cut? By removing marijuana from the controlled substance list, Harris and Nadler would also make legitimate businesses eligible to deduct routine business expenses — something the industry has been seeking for years.

Carl Davis of the liberal Institute on Taxation and Economic Policy said it would be hard to see how the 5 percent sales tax would raise more money than companies would be able to write off, especially given how lukewarm revenues have been in states that legalized marijuana in recent years and where the excise tax is much higher. Read more