What if the USA legalized cannabis sooner than expected?

Even though federal legalization of cannabis in the United States seems a long way off—and even more so with the latest statements from the Trump administration, some recent bills are moving in this direction, particularly by involving the U.S. Treasury. Nothing has been decided yet, but proposing a revolutionary tax on THC and exemptions for medical cannabis seem to be steps toward legalization.

Furthermore, public opinion is shifting in favor of cannabis legalization. In 1995, one year before California legalized medical cannabis, only 20% of Americans supported legalization. Today, that figure is over 60%, and 93% support medical legalization.

This shift in perception has largely enabled cannabis companies to increasingly push for legislation to legalize cannabis. Cannabis has generated revenue 1.3 billion from Q1 to Q4 in Colorado in 2016, including 200 million for the state. These taxes were used to fund public schools, the police, and drug abuse prevention programs within the state. And yet, the U.S. government is sticking to its position for now: to ban the use of cannabis.

The most comprehensive bill to date

New bills were introduced in Congress last week and compiled into a single package, The Path to Marijuana Reform. Introduced by Senator Ron Wyden (a Democrat from Oregon) and Earl Bluemenauer, a Democratic representative from Oregon, they consist of three parts:

• Small Business Tax Equity Act : This law would create an exception to the current tax code and allow cannabis businesses to take advantage of standard tax deductions, which they are not currently eligible for. Paying taxes on net profits would allow them to retain more profits, and thus grow and reinvest more quickly.
• Marijuana Policy Gap Act : This law would help bridge the current gaps between federal and state laws. In particular, it would eliminate federal criminal penalties and asset forfeiture for businesses that comply with their state’s laws but not federal law. It would also allow cannabis businesses to access banking services that are currently denied to them, and give veterans the right to medical cannabis, which is currently determined on a state-by-state basis.
• Marijuana Revenue and Regulation Act : Finally, this measure would remove cannabis from the list of prohibited substances, tax it, and regulate it. It would then be regulated and taxed like alcohol, with excise taxes that could reach 25% of the product’s price. Wholesalers, producers, and importers would be required to obtain licenses from the U.S. Treasury, although the sale and distribution of cannabis would remain illegal in states that choose not to legalize it.

The The Path to Marijuana Reform appears to be the most comprehensive proposal for cannabis legalization presented to the Senate to date. It would remove many of the obstacles currently faced by industry stakeholders while eliminating the numerous gray areas between federal and state laws.

Despite clear support among the American people for legalization, obstacles still exist at the highest levels of government. Congress is, in fact, controlled by the Republicans. A recent study showed that two groups of people remain reluctant to see changes in cannabis laws: seniors… and Republicans.