Banking is the linchpin to fully opening up revenues earned by the cannabis industry. States that have legalized marijuana are urging the federal government to update banking guidelines that stand in the way of receiving millions in tax revenues.
The marijuana industry has been a financial windfall for every state that has legalized cannabis, but federal banking guidelines stand in the way of states collecting taxes on the projected $28 billion that a mature marijuana industry would bring.
Illinois State Treasurer Michael Frerichs joins California State Treasurer John Chiang’s organizing efforts at the state level to appeal directly to President Trump. Mr. Frerich sent a letter requesting federal guidance to the banking industry for the cannabusiness industry.
Twenty-six states have legalized cannabis, so banking guideline amendments for cannabusinesses is becoming more urgent. Tax collections in many legalized states exceeded initial revenue estimates. A mature cannabis industry could generate up to $28 billion in tax revenues for federal, state, and local governments, including $7 billion in federal revenue, $5.5 billion from business taxes, and $1.5 billion from income and payroll taxes, according to the Tax Foundation.
As the US government continues to delay common sense updates to the banking guidelines, it is also not able to fully realize its own tax percentage, an estimated $7.5 billion, generated by the cannabusiness industry.
A strong economic move by President Trump to enable banks to process those funds would send a positive message to local and state governments and would create room for employment, production, and growth.
SingleSeed anticipates more state treasurers and other government officials will continue to direct attention to this issue as revenues continue to build.