Multi-state cannabis operator, MariMed Inc., took a stand for the marijuana industry by re-enacting the Boston Tea Party to protest federal code 280E.
This stunt was in recognition of the 250 years of this famous act of civil disobedience and served as an effort to bring attention to how 280E is preventing legal cannabis businesses from making key tax deductions like other traditional companies.
In doing so, MariMed hopes to ignite support for a repeal of this legislation that has been unfairly punishing marijuana businesses in all states where it is legally sold. This protest is part of a more significant movement aiming to end the financial hurdles posed by 280E and ensure that the cannabis industry is given the same opportunities for success as other industries.
By embracing an iconic moment in American history, MariMed has made a powerful statement about the need for policy change in this space. It is now up to all of us to unite behind this effort and fight for reform.
Section 280E
Congress enacted section 280E during the Reagan Administration when marijuana use was still widely criminalized. This law prevents any company selling Schedule 1 drugs from deducting business expenses, including wages and overhead costs, from their gross income—a significant financial burden unique to the cannabis industry.
As a result of this law, marijuana businesses across the country are paying an effective tax rate of 70-90%. At the same time, other traditional companies in non-cannabis industries enjoy much lower effective tax rates.
This unfairly places cannabis companies at a major disadvantage and makes it difficult to compete with other businesses that do not have to pay such exorbitant taxes.
280E must be repealed if the legal cannabis market is ever to reach its full potential. That’s why MariMed and other key players in the space are fighting for a repeal of this legislation so that all businesses can thrive without having to bear such hefty financial burdens.
By pushing for reform, they hope to level the playing field and create a fairer environment for everyone in the marijuana industry.
Impact of Section 280E on Cannabis Businesses
The impact of 280E has been devastating for legal cannabis businesses across the country. For one, it makes it difficult for companies to raise capital due to their high effective tax rate. This prevents them from investing in new products and services, which stunts growth and makes it hard for them to compete with traditional companies that aren’t subject to such astronomical taxes.
Additionally, by preventing these businesses from making certain deductions, they end up paying more taxes than is necessary—a costly expense that further decreases their bottom line.
The effects of 280E extend beyond financial costs as well, as companies are forced to invest more time and energy into tax planning in order to navigate this complicated regulation. This takes away from resources that could otherwise be used for research and development or customer service—areas that ultimately help drive business success.
280E has been a major impediment to the legal marijuana market, which is why it’s so vital that we continue advocating for its repeal. The only way for cannabis businesses to fairly compete with other industries is if they are given the same tax benefits afforded to all other companies operating within the law.
MariMed’s Boston Tea Party protest highlights the need for change and sends a strong message to Congress that this legislation must be altered in order for all businesses to succeed.
Congressional Support for Repealing Section 280E
Several members of Congress have been fighting to repeal 280E in order to provide legal marijuana businesses with the same tax benefits as other industries.
Rep. Earl Blumenauer (D-OR) introduced the Small Business Tax Equity Act that aims to amend the IRS code to allow state-legal marijuana businesses to finally take federal tax deductions like any other legal business. This is just one example of many efforts at the congressional level to end the financial inequity posed by this law and ensure fairness within the cannabis market.
Rep. Blumenauer’s bill has the support of over 30 co-sponsors and continues to gain traction, making it one of the strongest pieces of legislation currently on the table for marijuana reform.
This is a major step in the right direction. MariMed’s Boston Tea Party protest serves as an important reminder that we must continue advocating for swift policy change so that all legal businesses can thrive.
By re-enacting the Boston Tea Party, MariMed sent a powerful message to Congress about the need for reform. The significance of this landmark event on the 250th anniversary of its original occurrence is not lost on us, as it serves as a reminder that we must continue to fight for policy change in order to ensure fairness within the cannabis industry.
Speaking of historical anniversaries our Levers family history dates back to before the American Revolution. In 2026 the nation will celebrate its 250th anniversary. Our relative Robert Levers was one of the original three readers of the Declaration of Independance on July 11th, 1776. You can read more about the role he played in American history here.
We owe it to marijuana businesses nationwide to push for swift action and help end this financial burden once and for all. Only through collective effort can we create an equitable environment where all businesses are treated fairly—an effort that MariMed and many others are leading at the forefront.
Let’s join together behind this cause and take a stand against 280E so that everyone has an opportunity to succeed in this thriving new market.
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