The Cannabis Industry’s New Best Friend? President Trump
The New York Times • • business
Key Points:
- The legal cannabis industry has grown significantly, reaching around $30 billion today from less than $20 billion six years ago, but investors remain cautious due to high taxes, federal illegality, and complex state regulations.
- The Trump administration has relaxed federal controls on medical marijuana, reclassifying it from a highly addictive drug category to a lower-risk medicine, and is considering broader cannabis reclassification.
- Reclassification could substantially reduce tax burdens for cannabis companies, allowing them to claim common business deductions and potentially cutting effective tax rates from about 70% to levels comparable with other industries.
- The Treasury is contemplating making the tax relief retroactive, which could benefit companies that collectively owe billions in federal taxes, including major players like Trulieve and Curaleaf.
- Uncertainties remain regarding the implementation of these changes, the scope of businesses that will benefit, and how companies selling both medical and recreational cannabis will be treated.
