Medicinal Marijuana on Congressional Ballot Thursday

[Happy Panther]

yeah they are

 

If I remeber correctly, in one state, the fee is 10's of thousands of dollars and nonrefundable if your application is denied.

[Anybodyhome]

I am currently designing niche financial products for the cannabis industry and I have seen the numbers for growers and sellers. While the startup investments might be high they are making huge profits.

 

Interesting given the fact financing for federally illegal businesses is well, illegal.

 

And we haven't even gotten into how these growing businesses, which are illegal on the federal level, file federal income taxes. Those court battles are costing hundreds of thousands.

 

http://www.businessinsider.com/the-government-is-taxing-colorados-fastest-growing-industry-up-to-93-and-its-absurd-2013-9

"Your typical small business will pay between fifteen to thirty five percentage on average for their effective tax rate," Aldworth said. These are places like coffee shops.

But when you substitute beans for flowers, the picture gets a lot different.  

"If you open a marijuana store you can expect to have between 60 and 80 percent average effective business taxes. Sometimes it's as high as 90 or 93 percent."

 

http://www.huffingtonpost.com/2014/02/06/marijuana-business-tax_n_4717589.html

Dispensaries can't deduct traditional business expenses like advertising costs, employee payroll, rent and health insurance from their combined federal and state taxes. That means dispensary owners around the U.S. often face effective tax rates of 50 to 60 percent -- and in some states, those rates soar to 80 percent or higher, according to members of the pot industry who spoke to The Huffington Post.

In other words, the federal government rakes in tax revenue from pot shops while prohibiting them from accessing the same financial benefits afforded to non-cannabis businesses.

 

Now, while I do believe marijuana will be legalized at some point, and the requisite tax laws and federal laws will be changed as a result, would you as a financial guy feel safer putting your money into a distributor of marijuana infrastructure equipment or the grower?

 

[Happy Panther]

Interesting given the fact financing for federally illegal businesses is well, illegal.

 

And we haven't even gotten into how these growing businesses, which are illegal on the federal level, file federal income taxes. Those court battles are costing hundreds of thousands.

 

http://www.businessinsider.com/the-government-is-taxing-colorados-fastest-growing-industry-up-to-93-and-its-absurd-2013-9

"Your typical small business will pay between fifteen to thirty five percentage on average for their effective tax rate," Aldworth said. These are places like coffee shops.

But when you substitute beans for flowers, the picture gets a lot different.  

"If you open a marijuana store you can expect to have between 60 and 80 percent average effective business taxes. Sometimes it's as high as 90 or 93 percent."

 

http://www.huffingtonpost.com/2014/02/06/marijuana-business-tax_n_4717589.html

Dispensaries can't deduct traditional business expenses like advertising costs, employee payroll, rent and health insurance from their combined federal and state taxes. That means dispensary owners around the U.S. often face effective tax rates of 50 to 60 percent -- and in some states, those rates soar to 80 percent or higher, according to members of the pot industry who spoke to The Huffington Post.

In other words, the federal government rakes in tax revenue from pot shops while prohibiting them from accessing the same financial benefits afforded to non-cannabis businesses.

 

Now, while I do believe marijuana will be legalized at some point, and the requisite tax laws and federal laws will be changed as a result, would you as a financial guy feel safer putting your money into a distributor of marijuana infrastructure equipment or the grower?

You seem to be trying to convince me that they aren't making money when I know they are. 

[Anybodyhome]

You seem to be trying to convince me that they aren't making money when I know they are. 

 

Not really. Forgive me if I tend to believe WSJ, Business Weekly and Forbes over someone I've never met or know.

 

But you didn't answer my question. Would you finance my enterprise to sell infrastructure and equipment to a grower, which is totally legit and legal or would you finance a grower knowing it's against federal law and knowing he could be raided and in jail tomorrow?

 

[sharkkiller]

Where is all the name calling and ignorant old people claiming it ruins families and lives?

Or was that just towards me?

 

It was just towards your attitude. 

[Happy Panther]

Not really. Forgive me if I tend to believe WSJ, Business Weekly and Forbes over someone I've never met or know.

 

 

I can google articles too.

 

http://www.fool.com/investing/general/2014/01/04/the-making-of-colorados-marijuana-millionaires.aspx

 

I would finance the grower.

[Anybodyhome]

I can google articles too.

 

http://www.fool.com/investing/general/2014/01/04/the-making-of-colorados-marijuana-millionaires.aspx

 

I would finance the grower.

 

Even though it's against federal law.

 

Now, was that so hard?

[Happy Panther]

Even though it's against federal law.

 

Yes.

[Falcons1stPanthers2nd]

What else do most if them have to do with their time? Work at a job? Haha

I make 6 figures and used to smoke constantly. My buddy makes around 75 owning his restaurant. Laziness is in the person. Not the plant. 

[Night Prowler X]

I make 6 figures and used to smoke constantly. My buddy makes around 75 owning his restaurant. Laziness is in the person. Not the plant.

No you don't.

[Falcons1stPanthers2nd]

No you don't.

Okay.

[Happy Panther]

No you don't.

I do.

 

I make more than madhatter and I smoke some dank bud

[Porn Shop Clerk]

yeah you guys its not like you can be president or anything if you've smoked pot