There is new hope that states with adult-use and medical marijuana laws on the books and states considering legalization or decriminalization will finally be able to stop worrying about the Drug Enforcement Agency (DEA) commandeering their police officers and sheriff’s deputies to enforce federal marijuana prohibition. A bipartisan group of United States’ Senators and Representatives introduced the Strengthening the Tenth Amendment Entrusting States (STATES) Act on Thursday. It’s intent is to allow states to determine what marijuana laws are right for them.
Republican Cory Gardner of Colorado and Democrat Elizabeth Warren of Massachusetts introduced the bill in the Senate. Republican David Joyce of Ohio and Democrat Earl Blumenauer of Oregon are co-sponsors of the bill they introduced in the House of Representatives. Upon introduction of the bill, its creators emphasized that their legislation would not make marijuana legal throughout the country – as if the name of the bill and its acronym weren’t revealing enough.
The bill’s bipartisan group of writers wants everyone to know the STATES Act is a states’ rights bill and not a legalize marijuana bill for obvious reasons – the biggest being that legislation ending federal marijuana prohibition would never pass Congress let alone get the support of Donald Trump, who said he’ll “probably” back the bill. But any legislation even misrepresented as a marijuana legalization bill would do lasting damage to the cannabis movement that has seen economies, government budgets, infrastructure and education improve while crime, opioid overdoses, suicides and healthcare costs decrease in states with adult-use or medical marijuana laws.
With the STATES Act, it will be nigh impossible for Conservatives to justify their opposition of the bill by calling it an endorsement of drug use. Politicians representing states that border states with adult-use or medical marijuana laws could claim the bill would only stretch their law enforcement and judicial budgets even thinner, but they couldn’t misrepresent the legislation to their constituents as an attempt to legalize marijuana. They could even request additional federal funding to address the increased law enforcement and judicial workload they anticipate, but they couldn’t vote “no” with the excuse of “I’m not about to legalize marijuana.” I mean, they could say that in their defense, but not without subjecting themselves to ridicule.
Another reason the bipartisan crafters of the STATES Act are making cannabis a states’ rights issue is because it appeals to a majority of the public. A Gallup poll conducted in June 2016 found that 55 percent of Americans prefer government power to be concentrated at the state level instead of the federal level, and Republicans are are four times as likely to support state power.
Giving more power to the states appeals to Republicans, Libertarians and even some Democrats. Hell, I’m a Socialist, and I support small government because I know Socialism, like all forms of governing, works most effectively and efficiently in people’s behalf when the number of people it governs is small and when that population is concentrated in a governable geographic area. Why? The answer was provided by the late Alan Thicke back in 1978: “Now, the world don't move to the beat of just one drum. What might be right for you, may not be right for some.”
Those are, of course, the opening lyrics to the “Diff’rent Strokes” theme song, and a more true statement could not be uttered let alone sung. The United States is a vast country that spans the spectrum of both geography and demography, which makes it difficult to govern. Americans experience such differing circumstances that what might be right for you, may not be right for some. Hell, in my home state of Montana you can drive eight hours and never leave the state, but the geography and the people change immensely. What works in the West probably won’t work in the East and vice versa. Marijuana legalization might be right for Californians, but it may not be right for Nebraskans. The STATES Act would allow states to choose what cannabis laws work best for their residents.
This isn’t the first time a bipartisan bill has been introduced to strengthen states’ rights to adopt and enforce marijuana laws as they see fit. I was on Capitol Hill as a student lobbyist for Students for Sensible Drug Policy five years ago when H.R. 1523, the Respect State Marijuana Laws Act of 2013, was before the 113th Congress. It too sought to allow states to decide the legality of adult-use and medical marijuana by altering the Controlled Substances Act to exclude persons acting in compliance with state marijuana laws.
We felt way back then that this would be our path to ending federal marijuana prohibition, and while we weren’t going to get federal legalization, it was a compromise we were willing to make to appeal to Conservatives and get the legislation passed. I left the reception held after our lobby day filled with hope after hearing Democratic Congressman from Colorado Jared Polis and famed Conservative Grover Norquist agreeing that cannabis was an issue for states to decide by and for their respective residents.
According to Congress.gov, that bill is still before Congress, lost and forgotten by the Subcommittee on Crime, Terrorism, Homeland Security and Investigations since April 30, 2013. It has 28 cosponsors in the House, six of which are Republicans. The House version of the STATES Act already has 14 cosponsors in the House plus the two Representatives who assisted in drafting the bill. Eight are Republicans, so the new bipartisan bill is already appealing to more Conservatives than H.R. 1523.
This bipartisan group has high hopes for the STATES Act given what’s occurred since H.R. 1523 was introduced. The STATES Act does what H.R. 1523 would have. It amends the Controlled Substances Act to exclude persons acting in compliance with state and tribal marijuana laws. But it doesn’t eliminate all federal oversight. Distribution of cannabis at transportation facilities and rest stops would remain federally illegal and enforced. The STATES Act does a lot more than allow states to determine their own marijuana laws, though. It also addresses some of the issues that have resulted from states legalizing adult-use or medical marijuana, which should appeal to both sides of the aisle.
Back in 2011, I wrote that cannabis would be America’s best cash crop ever – even bigger than tobacco. Marijuana consumption has already far surpassed my expectations upon its legalization for adult- and medical-use, but industrial hemp is what’s going to make cannabis America’s best cash crop ever. It grows like a weed if you’ll forgive the pun, and can be used for virtually anything. It’s a stronger fiber than cotton and can be used to make textiles that last longer so our clothes don’t fall apart in the wash. It will make stronger rope, hopefully saving mountain and rock climbers’ lives, and cowboys, cowgirls and sailors headaches. Hemp seeds are also rich in fatty acids, protein, fiber and other important nutrients. Hemp can even be used as fuel, which ExxonMobil will no doubt exploit given its investment into biofuels. All that algae research ended up being nothing more than a good PR campaign because hemp is a much less intensive biofuel to produce than algae. You can even build a house out of something called hempcrete, and cannabis can also relieve your pain without getting you high. That’s right, cannabidiol, better known as CBD, has been proven to have pain-relieving, anti-inflammatory, and anti-anxiety properties without the psychoactive effects of THC. So cannabis can clothe you, feed you, shelter you, transport you and your things, relieve your pain, and even save your life while creating jobs and improving our environment by oxygenating the air. Along with solar and wind energy industries, industrial hemp will be one of the biggest contributors to the health of America’s economy and environment for years to come.
The STATES Act would make cannabis transactions legal, allowing cannabis providers to take methods of payment besides cash and store that money in a bank. Cannabis providers have had a justifiable fear of depositing their profits in federal banks subject to federal law. The federal government could seize those assets like they seize vehicles used to traffic drugs. No criminal charges need to be brought against the cannabis providers for them to lose their money either, as asset forfeiture is a civil action, not criminal.
Since its legalization in Colorado, many cannabis providers have hired motorcycle couriers to pickup and deliver literal saddlebags of money to be deposited in a safe somewhere. One California dispensary owner reportedly delivers $40,000 in cash in the trunk of his car every month simply to pay his taxes. The STATES Act would make those trips a thing of the past and likely result in fewer instances of theft.
So is 2018 finally the year federal marijuana prohibition ends? Some people think so, but ultra-Conservatives could get in the way, just as they did on a cannabis bill for veterans just last week. The STATES Act probably won’t have many supporters from the religious right, which will be its biggest obstacle to overcome. But now more than ever before, Senators and Representatives on both sides of the aisle are going to be more willing to consider the end of federal marijuana prohibition given what we’ve all learned from the experimentation spearheaded by states. Kentucky, Tennessee and Virginia could all adopt medical marijuana laws this year, and if that doesn’t surprise you consider where we were five years ago, when Maryland relaxing criminal penalties for seriously ill people using marijuana was considered a win for cannabis advocates.
Your Senators and Representatives are not experts on cannabis and need you to inform them on the issue, so here’s a guide on how to do so most effectively. You’ll want to appeal to the humanity in them. Politicians are not cold robots. When they hear a story about someone using cannabis to treat their chronic back pain that otherwise would keep them bedridden, they can probably relate to that. They especially want to know if cannabis helped you kick your opioid addiction. They have friends and family struggling with the same problems with which the rest of us struggle, so speak or write from the heart. The facts will only bore them to the point they tune you out.
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Now that Republicans’ plans to repeal and replace Obamacare are all but dead, GOP Congress-men and -women will be working to preserve their jobs by accomplishing something -- anything. Now it seems the Republican budget proposals will get in the way of their next big project -- tax reform. But there is a lifeboat out there for Republicans, if they’re willing to accept a hand from a Democrat.
Senator Ben Cardin (D-Md.) reintroduced S. 3529, otherwise known as the Progressive Consumption Tax Act (PCTA), back in December. And while the bill wouldn’t do what many Republicans would like and get rid of the Internal Revenue Service, it would re-purpose and shrink the IRS and make tax collection a lot easier. It would also make it so most people would no longer owe individual income taxes, and it would reduce the corporate income tax rate to one of the lowest among industrialized nations.
“How?” you ask. Well, revenue once created by income taxes would be replaced by revenue created through a consumption tax, which is a tax on goods and services consumed rather than a tax on income. It’s a lot like a sales tax, except Cardin has proposed what’s called a value added tax.
A value added tax is collected from each producer involved in the production chain of a product rather than the end consumer. So if a manufacturer buys $40-worth of product from other manufacturers earlier in the production chain, puts its own labor and materials into it and sells it for $100, the value added by that manufacturer is $60.
Why a value added tax? It’s more likely to be paid. Compliance is believed to be better when the tax is collected at all stages of production rather than the final stage, when the product is purchased by a consumer from a retailer. Both a retail tax and value added tax would produce identical revenue if compliance is perfect, and collecting at all stages of production would help ensure that is the case.
Cardin’s proposed a 10-percent, flat tax because it simplifies taxation, facilitates compliance and enforcement, and doesn’t allow for distortions based on product type. The few exemptions to the consumption tax are financial services, “which are difficult to handle within a VAT and are often exempted, residential rents, and sales of existing residential housing.” So you won’t pay taxes for your accountant or broker, rent or mortgage, or the sale of your home.
According to the independent and nonprofit Tax Foundation’s Taxes and Growth Model (TAG), the plan would raise the country’s gross domestic product (GDP) 4.4 percent, increase the stock of capital used in production by 15.2 percent, and create 1.1 million jobs. It would also increase after-tax income for rich and poor, so every American would have more money with which to stimulate the economy. In fact, real after-tax hourly wages would increase 6.5 percent.
That all sounds great, right? But will it pay the bills? In short, yes. Cardin’s plan is designed to raise at least as much revenue as the current income tax system does, and the rate can be altered, but the revenue created can never be more than 10 percent of GDP. That doesn’t mean the percentage can’t increase, but the U.S. tax revenue as a percent of GDP was 26.4 percent in 2015. Cardin’s plan would refund taxpayers any revenue over 10 percent of GDP.
Do you see how Cardin’s plan creates more revenue despite a lower percentage of GDP? Tax revenue, whether a consumption tax or income tax, is linked to economic growth. The more economic growth, the more tax revenue. Increasing the U.S. GDP 4.4 percent is no small feat. As of 2015 numbers that’s almost $800 billion, which would cover the entirety of the Republicans’ proposed military budget and then some ($621.5 billion).
Why should Congress enact a consumption tax? Well, much like healthcare, the United States is behind a lot of developed countries when it comes to taxation. About 150 countries have a consumption tax, most of which were established decades ago.
The consumption tax would also allow the U.S. to tax imports and subsidize exports without violating current World Trade Organization rules (WTO), which Donald Trump would love, even though economic theory indicates a border adjustment tax would end up trade neutral. But that’s what House Republicans want, even though, “Economists can show that the House Republican plan has the same effect as abolishing the corporate tax altogether, introducing a VAT, and then cutting payroll taxes.”
That makes the Republicans’ border adjustment tax nothing more than a political ploy that plays to its base, but that’s what Republicans need -- a political ploy that plays to its base. That and an accomplishment like tax reform. It ain’t gonna be healthcare or a budget anytime soon. So work together, Congress, and we can all get what we want.
Enacting a consumption tax is about as bipartisan as it gets. Republicans get to help corporations. Democrats get to help the poor, and Republican Congress-men and -women might get to keep their jobs. But apparently it’s a nonstarter for most Republicans -- unless you tell them otherwise. You can use Countable to keep your Congress-men and -women accountable to you. I urge you to contact them and tell them you want a progressive consumption tax. It will save every American money, and allows Americans to save and invest.
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