Tag: Mike Crapo

The American Bar Association Passes Resolutions Supporting Cannabis Banking Rights

No matter your stance on legalization, everyone that wants safe neighborhoods should support legal banking services for state-regulated cannabis businesses. The lack of access to banking services severely hinders the ability of entrepreneurs to conduct business, pay taxes, and expand operations. Along with the despicable 280e IRS tax code, access to normal banking services is a top policy change needed to allow the cannabis industry to thrive. As with most issues, banking reform is needed most by small craft cannabis boutique’s like Kind Leaf, which don’t have the deep pockets of multinational corporations.

Thankfully, we are seeing great momentum for normal banking services for the cannabis industry. The SAFE Banking Act has passed the House of Representatives, awaiting some movement in the Senate. As Marijuana Moment reports, the American Bar Association added its voice to the cause:

The group’s House of Delegates voted in favor of proposals endorsing pending federal legislation to protect banks that service cannabis businesses and calling for a clarification of rules to ensure that lawyers will not be penalized for representing clients in cases concerning state-legal marijuana activity.

Under the banking resolution, ABA “urges Congress to enact legislation to clarify and ensure that it shall not constitute a federal crime for banking and financial institutions to provide services to businesses and individuals, including attorneys, who receive compensation from the sale of state-legalized cannabis or who provide services to cannabis-related legitimate business acting in accordance with state, territorial, and tribal laws.”

ABA added that “such legislation should clarify that the proceeds from a transaction involving activities of a legitimate cannabis-related business or service provider shall not be considered proceeds from an unlawful activity solely because the transaction involves proceeds from a legitimate cannabis-related business or service provider, or because the transaction involves proceeds from legitimate cannabis-related activities.”

It is great to see some allies coming around to help out the cannabis community. Let’s keep the pressure up and momentum going. Idaho Senator Mike Crapo is currently the Senate Banking Committee Chair that will determine the fate of the SAFE Act. Please contact him and let him know that you support banking services for cannabis businesses and spread the word.

United States Government Collects Billions from Cannabis Businesses, Time to Treat them Fairly

The cannabis community and industry has made some great achievements in recent years, thanks to a ton of hard work by advocates and entrepreneurs. While those of us in the trenches can take pride in ending harmful arrests and helping generate revenue for our communities, it can be a bit frustrating when so many people think that political change is inevitable and that making a living in the cannabis industry is easy.

The truth of the matter is that we have improved our cannabis laws thanks to decades of hard work and sacrifices by a lot of people, many of whom haven’t lived to see the fruits of their labor. People that don’t know folks directly involved in the cannabis industry, are often under the impression that retailers, processors, and growers are just raking in big bucks; they have no idea the amount of work it takes to just stay afloat, let alone make a decent profit. Cannabis industry entrepreneurs are shattering the “lazy stoner” stereotypes by putting in long hours and sacrificing so much to forge their own American Dream.

Unfortunately, hard working business people are trying to earn a living with one hand tied behind their backs as they are often prevented from having access to ordinary banking services and they are taxed at an exorbitant rate thanks to the 280e IRS tax code as Quartz reported:

Although marijuana is illegal under federal law, cannabis businesses in the United States still pay federal taxes on gross income. They are not allowed any deductions or credits for business expenses, by law, which can mean an effective federal tax rate as high as 90%.

The US government collected an estimated $4.7 billion in taxes from cannabis companies in 2017 on nearly $13 billion in revenue. Unlike most American businesses, which pay electronically or by check, most of these marijuana firms are unbanked and were forced to pay their federal taxes in cash, something the IRS is still trying to get a handle on.

Change will eventually come, thanks to many people putting in a ton of work, but reforms really can’t come fast enough. A banking bill has a chance to pass Congress this year, but it’ll take the cannabis community and their supporters to step up and demand change. You can help by contacting your United States Senators. If you are an Idaho voter, please let Senator Mike Crapo know how much you support legalizing normal banking services for state-regulated cannabis businesses. People’s livelihoods literally depend upon it.

Cannabis Community Must Rally to Pass Banking Bill in the U.S. Senate

Those thinking that the cannabis industry is a get-quick-rich plan are most likely to be severely disappointed. A long list of obstacles hinder cannabis businesses from over regulation to over taxation, at all levels of government. The lack of access to banking services is one major hurdle for hard working entrepreneurs that are foundational pioneers in the burgeoning industry. The lack of a bank account poses enough problems, but without the business loans and other programs available to other industries, growth is severely stifled.

Thanks to the diligence of advocates, we won a major victory by passing the Secure and Fair Enforcement (SAFE) Act at the United States House this year, but unfortunately the much-needed banking bill faces a tough path in the Senate. Passage in the Senate will take a strong lobbying effort by the cannabis community after Idaho Senator Mike Crapo, while open to passing banking legislation, announced his opposition to the SAFE banking Act, as Marijuana Moment reported:

A powerful Senate committee chairman said on Wednesday the he opposes House-passed marijuana banking legislation and laid out potential changes he would like to see to the bill before he takes it up in his panel.

Among other amendments being floated for public feedback is a 2 percent THC potency limit on products in order for cannabis businesses to qualify to access financial services as well as blocking banking services for operators that sell high-potency vaping devices or edibles that could appeal to children.

“I remain firmly opposed to efforts to legalize marijuana on the federal level, and I am opposed to legalization in the State of Idaho,” Sen. Mike Crapo (R-ID), who chairs the Senate Banking Committee, said in a press release. “I also do not support the SAFE Banking Act that passed in the House of Representatives. I have significant concerns that the SAFE Banking Act does not address the high level potency of marijuana, marketing tactics to children, lack of research on marijuana’s effects, and the need to prevent bad actors and cartels from using the banks to disguise ill-gotten cash to launder money into the financial system. I welcome input from all interested parties on how to thoughtfully address these concerns.”

Regardless of one’s stance on cannabis legalization, everyone should support banking access for industry participants. The SAFE Banking Act will help businesses grow, creating more jobs and generating more revenue. Public safety and prompt tax payments will also improve if banking services are fully legalized. The lack of banking services hurts small and medium businesses the most and these mom-and-pops and craft cannabis boutiques need our support, both with our dollars and our political activism.

The future of the cannabis industry depends upon our community shopping with local companies and urging our elected officials, especially United States Senators, to treat the industry like any other business sector. It certainly seems like Idahoans need to contact Senator Crapo and it is imperative that we make our voices heard. We’ve come a long way, we just need to remain vigilant and keep making progress for the cannabis community step by step, piece by piece, law by law.