Oregon Congressman Puts Name on Legislation to End Pot Prohibition, Allow Standard Business Deductions for Dispensaries

While many congressmen say something should be done about marijuana, Oregon Representative Earl Blumenauer is taking up the cause of actual federal reform of marijuana laws, Politico reports.

Blumenauer, along with 13 other co-sponsors, introduced legislation that would allow medical marijuana use at the federal level and allow dispensaries to take deductions other business are allowed to take.

Though many states have OK'd the medical use of pot (most by popular vote), the federal government continues to shut down dispensaries on the grounds of violating drug laws and despite promises made by President Barack Obama that he would not make medical marijuana prosecutions a priority.

The IRS has ruled dispensaries are not eligible for standard business deductions such as rent and payroll. Without these deductions, a dispensary's tax rate could hit 75 percent.

"Frankly, the people in the federal hierarchy are in an impossible position," Blumenauer said. "[This bill] gets the federal government and the Department of Justice out of this never-never land."