Marijuana Growers Face 90 Percent Federal Tax Rate, As Deductions for Expenses Not Allowed by IRS

Marijuana Growers Face 90 Percent Federal Tax Rate, As Deductions for Expenses Not Allowed by IRS | Somewhat Reasonable:
At a briefing last week in Washington for conservative activists, marijuana entrepreneurs reported that per the federal tax code, any business that sells a Schedule I or Schedule II drug — narcotics under federal law — cannot deduct their business expenses from their taxes.
That increases costs dramatically for the erstwhile, legal (in some states) pot growers. 
“Because marijuana businesses are not allowed to deduct their expenses, in certain circumstances, legal marijuana businesses can pay federal income tax rates of nearly 90 percent, while the Small Business Administration estimates that many small businesses pay an effective rate of 20 percent,” a grower said during the background briefing last week.