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So far this is most obvious at the state and local levels, where excise and sales taxes in the seven states with legal sales underway will generate at least $1.6 billion in revenue in 2019.[1] But it is also true at the federal level where, despite federal illegality, state-legal cannabis businesses are paying substantial amounts of federal income tax revenue.[2] In fact, because an unusual federal tax law (section 280E) denies many routine deductions to cannabis businesses, the industry is paying higher effective federal income tax rates than comparable businesses selling other products

3 [7] The American Colonies Act 1766, aka The Declaratory Act, explained at [8] 1686 Virginia Charter [9] [10] Willi Paul Adams, The First American Constitutions