A Study of Cannabis Legalization and Taxation: : Focusing on the Constitutionality Debate in the United States

As the debate over marijuana legalization has intensified worldwide, the issue of marijuana taxation has become an important one. In particular, in the United States, marijuana has been legalized in some states and the related industry is growing, but marijuana taxation has become a topic of debate due to constitutional issues. Although the issue of marijuana taxation has not yet been addressed much in Korea, US precedents could have an impact on our marijuana industry in the distant future. Therefore, it is necessary to analyze advanced cases and seek appropriate taxation methods that suit the Korean situation. In the United States, IRC § 280E means that marijuana producers cannot deduct business expenses and have to pay high taxes. Many companies have filed lawsuits alleging that this is unconstitutional, but the courts have ruled that IRC § 280E is not unconstitutional for marijuana industries that are legally operated under state law. In a recent precedent, the court also determined that the restriction on expense deductions for the marijuana industry is necessary because marijuana is still illegal at the federal level. Thus, marijuana legalization goes beyond a simple issue of personal freedom to a complex issue that has a wide-ranging impact on various areas such as society, economy, and law. In particular, taxation is an important issue that must be considered when discussing marijuana legalization. This paper provides an in-depth analysis of constitutional issues and suggests suggestions, focusing on the marijuana tax debate in the United States. Suggestions can be obtained from a variety of aspects, including the preparation of tax standards due to the emergence of new industries, the definition of income, cost recognition standards, court interpretations, and constitutional interpretations. When discussing marijuana legalization in Japan, we must also consider these various aspects comprehensively and establish rational policies.