Marijuana is getting cheaper. For some states, that’s a problem.

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Bags of marijuana sit on shelves in a building at the Los Suenos Farms facility in Avondale, Colorado, on Feb. 25, 2016. (Matthew Staver / Bloomberg)

Wholesale marijuana prices in Colorado have fallen by a third in just the past 12 months, continuing a price crash that began soon after the drug was legalized. Although this implies that some marijuana entrepreneurs are going to go bankrupt, the bigger financial hit will be felt by states that tax marijuana based on its price.

Marijuana prices are collapsing in Colorado and in other legalization states (e.g., Oregon, where the price can go as low as $100 per pound) because a legal business is dramatically cheaper to operate than an illegal one. Because states generally set their marijuana tax rates as a percentage of price, their revenue per sale sinks in direct proportion to the fall in marijuana prices. Ironically, in a bid for more tax revenue per marijuana sale, Colorado increased its marijuana tax rate from 10 percent to 15 percent last year, only to see the anticipated added tax revenue wiped out by falling prices in a year’s time.

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Internet sales tax will force small businesses to abide by tax codes in 9,646 different jurisdictions

Every business could face 46 separate audits (from the 45 states that collect sales taxes plus the District of Columbia).

Legislation on internet sales tax could subject small online businesses to up to 46 state audits. And since sales taxes vary among thousands of tax jurisdictions across the country, the chances that auditors will find mistakes—and slap the business owners with penalties—are very good. If truth-in-advertising requirements applied to legislation, says Heritage Action’s Dan Holler, the Marketplace Fairness Act would be renamed the Tax Audits from Hell Act of 2013.

 

 

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France proposes to tax the internet

France proposes an internet tax on American companies collecting personal data.

France is seeking new ways to raise funds.  Because of frustration with American technology companies that dominate its digital economy which are largely beyond the reach of fiscal authorities, France has proposed a new levy.  They are proposing an internet tax on the collection of personal data.

 

 

 

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Researchers say sugar should be regulated as a toxin

sugar

Sugar and other sweeteners are so toxic to the human body that they should be regulated as strictly as alcohol by governments worldwide, according to researchers.

A spoonful of sugar might make the medicine go down. But it also makes blood pressure and cholesterol go up, along with your risk for liver failure, obesity, heart disease and diabetes.

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IRS Gives Tax Breaks to Breastfeeding Moms

breastfeeding moms

IRS says breastfeeding expenses are tax write-offs.

Breastfeeding is easier on the planet because formula takes energy to produce, transport, and it wastes space in landfills. Not to mention that breastfeeding is the most natural means of giving your baby the best possible start. Michelle Obama even promoted breastfeeding as a means of reducing childhood obesity down the line. And most recently, the Internal Revenue Service (IRS) announced tax breaks for breastfeeding moms.

 

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