Cannabis research firm, Whitney Economics, conducted an impact analysis of federal taxes on the cannabis industry and it was not very pretty.

In 2022 alone, cannabis operators paid over $1.8 billion in additional taxes as compared to ordinary businesses. And worse, this excess is forecasted to increase to $2.1 billion in 2023.

Why Are Cannabis Operators Overpaying Taxes? Great Question

Cannabis operators are subject to federal tax provision 280E, a federal internal code and bane of the cannabis industry’s existence. It essentially penalizes anyone who sells “Schedule I or II controlled substances” from being able to deduct business expenses like other companies. And, as we know, cannabis is still classified as a Schedule I drug.

Beau Whitney, chief economist …

Full story available on

A note to our visitors

This website has updated its privacy policy in compliance with changes to European Union data protection law, for all members globally. We’ve also updated our Privacy Policy to give you more information about your rights and responsibilities with respect to your privacy and personal information. Please read this to review the updates about which cookies we use and what information we collect on our site. By continuing to use this site, you are agreeing to our updated privacy policy.