Are weed growers being taxed too much?
In the US, legal weed businesses are legally obligated to pay taxes on gross profits, even though the majority of industries pay based on net profits. Because marijuana remains a federal controlled substance, sellers of recreational marijuana cannot claim deductions, and in some states, they must charge a 27.9% tax, which encourages consumers to shop elsewhere (illegally).
The Marijuana Tax Equity Act, proposed in 2013, would end federal prohibition on marijuana, but would also tax it at 50%. Even with that high of a tax, the bill could be an improvement to the current situation.