Canada’s legal cannabis industry turns four on Monday. Its pitiful state is a reminder of the risks U.S. players face if America follows its neighbor’s lead.
Earlier this month, President Biden said he will pardon federal cannabis offenses and order a review of how the drug is classified. This isn’t likely to lead directly to the end of federal marijuana prohibition, but might set the country on the road to further reforms that could benefit U.S. pot growers, who operate in a weird legal limbo. Today, they aren’t allowed to make deductions for normal business expenses so effective tax rates can be as high as 70%. They are also largely barred from accessing many financial services, something that a bill called the SAFE Banking Act proposes to fix.