> Businesses frequently pay an effective tax rate of 70%, in part because they are breaking federal law and therefore aren’t able to take tax deductions, but al

> Businesses frequently pay an effective tax rate of 70%, in part because they are breaking federal law and therefore aren’t able to take tax deductions, but also because politicians see the industry as a source of tax revenue and set higher rates Massive taxation on legal dispensaries combined with relatively lax enforcement of illegal distribution is, of course, going to make the legal operations a tough sell. What I didn’t realize is that some of these illegal dispensaries are apparently operating out in the open, out of actual storefronts according to this article. If enforcement is that lax and the legal route is taxed to an extreme then the outcome isn’t really surprising.