California pot shops ordered to shut down within 45 days

(Ah ha, see? Obama has destroyed the medicinal pot industry. The biggest fucking hypocrite ever elected president has broken yet another campaign promise. We knew this was going to happen and saw it coming. They used the Capone law--an ancient prohibition tax law that hasn't been used in ages. They get you on tax evasion because you can't make a single tax deduction when you deal with controlled substances, so you owe years of back taxes totaling huge sums of money. But the pharmaceutical companies sell amphetamines--a schedule 1 controlled substance--they get to take tax deductions. So, how does that work?--jef)

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By Stephen C. Webster - RAW Story

Friday, October 7, 2011

The Obama administration is finally cracking down on the medical marijuana industry, in a big way.

In letters received by 16 licensed California dispensaries and their landlords this week, U.S. Attorneys threatened to swoop in and seize the properties if they don’t close up shop within 45 days.

The Associated Press said that a coordinated crackdown on the medical marijuana industry would be announced at a press conference on Friday.

The move comes in the same week that the Internal Revenue Service took steps that may force Oakland’s Harborside Health Center, the nation’s largest medical marijuana dispensary, to shut down.

The same enforcement tactic that’s being used against Harborside — a very old law that prohibits groups that traffic in controlled substances from taking tax deductions — could also be used against pot shops in all of the 16 states that have legalized the drug’s use for medical purposes.

The U.S. medical marijuana market has grown into a $1.7 billion industry, and experts say it could potentially double that figure within just five years.

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Here is what the hypocrite Obama said on the campaign trail:

“My attitude is if the science and the doctors suggest that the best palliative care and the way to relieve pain and suffering is medical marijuana then that’s something I’m open to because there’s no difference between that and morphine when it comes to just giving people relief from pain. But I want to do it under strict guidelines. I want it prescribed in the same way that other painkillers or palliative drugs are prescribed.” — November 24, 2007 town hall meeting in Iowa

“I would not have the Justice Department prosecuting and raiding medical marijuana users. It’s not a good use of our resources.” — August 21, 2007, event in Nashua, New Hampshire

“I don’t think that should be a top priority of us, raiding people who are using ... medical marijuana. With all the things we’ve got to worry about, and our Justice Department should be doing, that probably shouldn’t be a high priority.” — June 2, 2007, town hall meeting in Laconia, New Hampshire

“You know, it’s really not a good use of Justice Department resources.” — responding to whether the federal government should stop medical marijuana raids, August 13, 2007, town hall meeting in Nashua, New Hampshire

“The Justice Department going after sick individuals using [marijuana] as a palliative instead of going after serious criminals makes no sense.” — July 21, 2007, town hall meeting in Manchester, New Hampshire

With latest ruling, IRS threatens to crush the whole medical marijuana industry

(So, "campaign Obama" promises to allow medical marijuana to proceed without legal interference, but president Obama--so far breaking all but one or two of his obviously empty campaign promises, uses the IRS to effectively end the entire legal medical marijuana industry. Obama apologists will spin this one way and blame it on everyone but Obama, like they do all of his failures and capitulations, and the Republicans will still call Obama the most liberal person who ever lived. How can two so totally out of touch groups co-exist without exploding? Oh yeah, and marijuana CURES cancer, so why would anyone want a legal cancer cure available to cancer patients?--jef)

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By Stephen C. Webster - RAW Story
Wednesday, October 5, 2011

The Internal Revenue Service (IRS) is on the verge of shutting down California’s largest medical marijuana dispensary, and with it potentially the entire semi-legal pot industry.

The Harborside Health Center in Oakland — which was going to be the subject of a Discovery Channel reality show called “Weed Wars” — now owes the IRS $2.5 million in back taxes, thanks to the recent enforcement of a federal law that prohibits organizations that traffic in “controlled substances” from taking tax deductions.

Those deductions, for things like payroll, workers’ compensation insurance and the like, were taken by Harborside in 2007 and 2008, meaning they owe significantly over the roughly $500,000 Harborside paid in federal taxes both years. Harborside also paid the city of Oakland about $1.1 million and the state of California another $2 million. Just last week owner Steve DeAngelo presented the city with another $360,483 tax payment, and even sent out a press release about it.

DeAngelo was quick to tell reporters that he will likely appeal the ruling, although his tax bill could grow exponentially once the IRS completes audits of his 2009 and 2010 filings.

If DeAngelo’s appeal fails, it’s over: Harborside will close up shop. So too will most of the other medical marijuana dispensaries in California, if the IRS pursues the same tax tactic state-wide.

It was not immediately clear whether this would affect the Discovery Channel’s plans for “Weed Wars.”

Harborside posted over $22 million in revenue in 2010 and boasts that it serves over 94,000 customers as the nation’s largest marijuana dispensary.

Just 16 states have legalized medical marijuana, but already it has grown into a $1.7 billion industry, and experts expect it will double those revenues within just five years.
A Discovery Channel spokeswoman did not respond to a request for comment.

If Marijuana Production Were Legal: Projected Tax Revenues, by State

Love it or hate it, people smoke marijuana - lots of it. In some states marijuana consumption and possession have been decriminalized, and even legalized for medicinal purposes. But, have you ever wondered how large the economics of Marijuana were? Us too. As a result ,have decided to put together this graphic, which illustrates the popularity of marijuana consumption, the federal tax dollars spent to keep marijuana illegal, and the possible tax revenues that could be generated if marijuana production were legalized and taxed like any other agricultural product. It is especially interesting, with regards to the Great Recession: