hobby income, use gross revenue or gross income?

It was Jack Kemp who said if you want more of something, subsidize it; if you want less of something, tax it.

In several States and the District of Columbia, there is such a thing as legalized MJ, and they are going to tax the hell out of it.

Here is a snip of a Noo Yawk Times article included here for the benefit of one of our esteemed colleagues who declines to read damnyankee rag sheets and is chronically depressed right now because his Chicago Cubs are in the dumpster as usual.

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\By KIRK JOHNSON Published: October 25, 2009

GREELEY, Colo. - Health and law enforcement officials around the nation are scrambling to figure out how to regulate medical marijuana now that the federal government has decided it will no longer prosecute legal users or providers.

For years, since the first medical marijuana laws were passed in the mid-1990s, many local and state governments could be confident, if not complacent, knowing that marijuana would be kept in check because it remained illegal under federal law, and that hard-nosed federal prosecutors were not about to forget it.

But with the Justice Department's announcement last week that it would not prosecute people who use marijuana for medical purposes in states where it is legal, local and state officials say they will now have to take on the job themselves. .....

Dick

Reply to
Dick Adams
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It isn't legal, according to the Supremes. The Supreme Court held that no implied medical necessity exists to prohibitions on the manufacture and distribution of marijuana under the Controlled Substances Act.  United States v. Oakland Cannabis Buyers¹ Cooperative,

121 S. Ct. 1711 (2001).  A couple years later in GONZALES, ATTORNEY GENERAL, et al. v. RAICH et al., the plaintiffs came after the Commerce Clause and lost. Stephens writing for the majority held that Congress' Commerce Clause authority includes the power to prohibit the local cultivation and use of marijuana in compliance with California law. So it is still illegal in all 50 states. Now, the Feds (as Feds tend when a law offends them no matter what their stripe) have decided not to prosecute under this statute. For now. But that doesn't make it any less illegal and since this is essentially based on a whim, albeit one not likely to be visited again for at least 2 and possibly 6 years, I can see why banks and others might be hesitant to get involved in an action where the statute of limitations might not expire before the administration does.
Reply to
Kurt Ullman

That is technically true. However Obama has said that the feds won't go after medical marijuana in states that have legalized it.

Reply to
Stuart A. Bronstein

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