DLG Learning Center: Half In, Half Out – Standing Akimbo, LLC v. United States, 594 U.S. (2021)

DLG Learning Center: Half In, Half Out – Standing Akimbo, LLC v. United States, 594 U.S. (2021)
CANNANNEW REPORT

Half In, Half Out 08/05/2021 On June 28th, Supreme Court Justice Clarence Thomas released a statement pertaining to the federal ban on the cultivation and use of marijuana within states where he noted that it “may no longer be necessary or proper.” This statement was made in connection with the denial of a petition for a writ of certiorari to the Supreme Court of the United States (SCOTUS) in the case of Standing Akimbo, LLC v. United States. Facts In 2005, SCOTUS held that Congress’s power to regulate interstate commerce authorized it “to prohibit the local cultivation and use of marijuana” in Gonzales v. Raich, 545 U. S. 1, 5 (2005). There, SCOTUS’s reasoning was that Congress had “enacted comprehensive legislation to regulate the interstate market in a fungible commodity” and that “exemption[s]” for local use could undermine this “comprehensive” regime. SCOTUS stressed that Congress had decided “to prohibit entirely the possession or use of [marijuana]” and had “designate[d] marijuana as contraband for any purpose.” Prohibiting any intrastate use was, therefore, “necessary and proper” to avoid a “gaping hole” in Congress’s “closed regulatory system.” The petitioners in this case lawfully operate a medium medical-marijuana dispensary in Colorado. The issue here is a provision of the Tax Code that allows most businesses to calculate their taxable income by subtracting from their gross revenue the cost of goods sold and other ordinary and necessary business expenses, such as rent and employee salaries. But because of a public-policy provision in the Tax Code, companies that deal in controlled substances prohibited by federal law are treated differently. Instead, these businesses can only subtract the cost of goods sold, not the other ordinary and necessary business expenses. Under this rule, a business that is still in the “red” after it pays its workers and keeps…

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Source : DLG Learning Center: Half In, Half Out – Standing Akimbo, LLC v. United States, 594 U.S. (2021)

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