Just as a reminder: national Democrats are committed members of the War on Some Drugs.
Legal marijuana businesses without bank accounts are unfairly assessed a 10 percent penalty on federal employee withholding taxes they are required to pay electronically but are forced to pay in cash, according to a lawsuit challenging the practice.
That’s because the Internal Revenue Service requires all businesses to pay the quarterly tax by bank wire, an impossibility for hundreds of medical and recreational marijuana shops nationwide that are unable to obtain banking services.
And rather than waive the penalty for cash-only businesses paying the tax on time, the IRS advised the companies to avoid the assessment by using techniques that amount to money-laundering, according to a petition filed in U.S. Tax Court.
I don’t smoke the marijuana myself, and if you asked me point-blank whether I think anybody else should I’d say ‘No.’ But this is a pretty obnoxious government scam. The feds have made it insanely difficult for pot-related businesses – which are legal in several states – to get bank accounts; and because of that the IRS then gets to turn around and impose what’s effectively a 10% You Are Unpopular At The God-King’s Court tax on those businesses. You don’t have to be a screaming libertarian to see the problem with that particular blithe worldview; even if you think pot businesses deserve this treatment, eventually the feds will try the same trick on someone that you like. They always do.