Entrepreneurs in the relatively new medical marijuana industry are getting slammed with federal income tax rates as high as 75 percent, thanks to a 1982 provision in the tax code that was meant to target drug runners.
The provision, 280E, bars anyone selling illegal substances from deducting related expenses from their federal income taxes. This means businesses that sell medical marijuana legally aren’t allowed to take rent or payroll as a business expense. - Read more at CNN
NAPOLITANO: CUTS COULD LEAD TO TERRORIST ATTACK Department of Homeland Security Secretary Janet Napolitano sufficiently scared the heck out of everyone today when she warned that allowing the $85 billion in sequester cuts to take effect would leave the United States more vulnerable to a terrorist attack. Napolitano made her comments this afternoon at the White House as part of a public relations effort by President Obama to pressure Congress into cutting a deal to replace the cuts before Friday. - Read more at The Washington Post
HOUSE GOP TO PRESIDENT: STOP CAMPAIGNING! House Speaker John Boehner, R-OH and Majority Leader Eric Cantor, R-VA, criticized President Obama for “campaigning” instead of offering solutions to replace the sequester during a press conference in the Capitol today. “Stop campaigning and come back to the table and work with us,” Cantor said. - Read more at Business Insider
HOUSE REPUBLICANS ATTEMPT TO SPARE CUTS TO THE PENTAGON Two House GOP lawmakers on the Armed Services Committee are introducing new bills this week to spare the Pentagon from the blunt sequestration cuts that take effect Friday. Rep. Randy Forbes, R-Va, will propose to completely do away with the defense side of sequestration. While Rep. Mike Coffman, R-CO, will propose to target $500 billion in cuts — rather than allow them to hit across-the-board. - Read more at The Hill