States Reform Act is Ideal Cannabis-Reform Legislation and a Win for Taxpayers and Consumers

For Immediate Release

Contact: Lindsey Stroud (757-354-8170)

Washington, D.C. – The Taxpayers Protection Alliance (TPA) welcomes federal cannabis reform legislation recently introduced by Congresswoman Nancy Mace (R-S.C.). The States Reform Act is a comprehensive federal bill that would remove cannabis and other cannabinoids from the federal Controlled Substances Act.

The legislation would also expunge federal records for persons convicted of cannabis-related offenses within one year of the legislation’s enactment. Under the provisions, cannabis products would be regulated by the Alcohol and Tobacco Tax Trade Bureau and the legislation would specifically bar the U.S. Food and Drug Administration from regulating any non-medical cannabis product. Further, the States Reform Act would allow financial institutions to provide financial services to legal cannabis product producers. Finally, the legislation would impose a federal tax rate at three percent.

Lindsey Stroud, Director of the Consumer Center at TPA offered the following comments:

“As of September 2021, 47 states have legalized adult use of cannabis in some form, from cannabidiol (CBD) and hemp products to recreational adult use of cannabis products containing tetrahydrocannabinol (THC). In fact, in 2021, every single state cannabis-reform ballot measure passed. An April 2021 poll conducted by the Pew Research Center found that less than 10 percent of American adults opposed medical or recreational use of cannabis products. Despite this, the federal government continues to regulate cannabis as a Schedule I drug under the Federal Controlled Substance Act, which finds that there is no medicinal value to cannabis.

“The States Reform Act not only recognizes Americans’ approval of cannabis use for adults but will empower existing cannabis laws in the states. Currently, 18 states permit recreational cannabis use for adults, yet legitimate business cannot access federally-regulated financial institutions because of the federal drug classification. This legislation corrects that.

“Unlike other federal cannabis reform legislation, the States Reform Act recognizes that punitive taxation would simply preserve existing black markets for cannabis products. The States Reform Act imposes only a low, three percent excise tax on cannabis products, which will be distributed to small businesses, law enforcement and mental health programs, and all-but shutter the $70 billion underground market.”

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Taxpayers Protection Alliance (TPA) is a non-profit, non-partisan organization dedicated to educating the public through the research, analysis and dissemination of information on the government’s effects on the economy.