Marijuana Catch-22

With the DEA urging private armored truck companies to stop carrying medical marijuana dispensary cash, it's becoming clearer and clearer that the government will not let this go without a continuing fight. It's something so arbitrary to the government yet so important to the businesses themselves that this action is really just straight out cruelty in an attempt to try and 'pressure' the industry to close while at the same time, still touting [lying] that the administration won't be going after individual users.
Kevin A. Sabet, a former Obama administration drug policy adviser, defended the DEA’s actions, arguing that the agency will continue to go after high-level drug providers, since their operations are still in violation of federal law, regardless how they are treated by states. He also said that “with the money these guys are making, I’m sure they will be able to create their own armored cars that discreetly transfer their cash.”
This statement, the one I've emphasised, is so combative and, honestly, just assholish. Essentially saying, because you guys make so much money [not unlike many low price, high customer volume businesses] you have to figure out your own way to transfer your cash sales. And it's all cash because dispensary businesses cannot have bank accounts or take credit or debit cards, also due to government pressure. The IRS will not even allow dispensaries to deduct normal business expenses, just as any other business would be allowed to do. Here's a little more on the tax code which only allows the cost of producing or acquiring inventory as deductible expenses but not utilities, salaries, travel, advertising, etc.

Why would the companies fall in line? I don't know anything about their inner workings but my guess is they threatened to repeal some kind of government insurance [FDIC for banks; credit cards and armored trucks may also have some kind of insurance]. That's just a guess; it's worse to think companies will so easily get in bed with the government. I mean, we live in a society run by money and nobody ever has enough; why would any company agree to less business unless by some serious government threat?

It's also worth noting that the government created this situation in which a few dispensaries make a lot of money; with dispensary bans in cities and counties, they ensured all the business goes to a few hands. They seem to miss that connection or simply don't care; my guess is they just want to focus on the slow crushing of the industry, hoping it will collapse in on itself once all the supports are removed.

This is going to continue to be a long and horrible fight.

Comments