The high tax on marijuana

Last November, Amendment 2 was passed by the voters of Florida, expanding the use of medical marijuana, with an overwhelming 71% margin of victory. Twenty-six states and the District of Columbia have legalized marijuana in some form, and the trend seems to be toward an expansion of allowed use.

What we have now is a unique situation where marijuana can be legal for state purposes but still considered an illegal drug for federal purposes. Under the federal Controlled Substances Act, marijuana is considered a Schedule I drug. States can write laws to legitimize the consumption of marijuana within the borders of the state, but sometimes federal law can rear its head with unexpected consequences.

One of these ways is with federal income tax.