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Cannabis Industry Faces $2.3B Tax Crisis Amid Federal Code 280E

U.S. cannabis industry owes $2.3B in federal taxes due to Section 280E. Learn how tax code prevents expense deductions & threatens legal marijuana businesses' survival.

This tax crisis directly impacts cannabis consumers, investors, and state economies. If businesses continue struggling under Section 280E's punitive tax structure, consumers could face higher prices, reduced product quality, and limited access as companies cut costs or close operations. Investors risk significant losses as publicly traded cannabis companies grapple with unsustainable tax burdens. State governments stand to lose substantial tax revenue and job creation potential from an industry that employs thousands. The resolution of this tax conflict will determine whether legal cannabis can compete with the illicit market and fulfill its economic potential, making it crucial for anyone involved in or affected by the cannabis industry's growth.