Marijuana is one of the most well-known drugs throughout the United States as well as across the world. While marijuana usage has dramatically increased since the turn of the millennium, according to federal law, marijuana is still a schedule one drug, making it illegal throughout the United States. Although this may be the case, there have been numerous recent occurrences where states have questioned the authority of the federal government and legalized the substance within their state either on either a recreational or medicinal basis. Typically, What is not up to the states ever is whether or not a drug is legal. But that was challenged with Colorado and Washington in 2012 — they became the first states to pass by voter initiative the fact that adults could legally use marijuana in those states and they could license the commercial sales of marijuana, which was in direct violation of all the history of the federal government. The conflict over whether or not states have the authority to do such a thing has raged on since the legalization of marijuana in these states in 2012, and in some cases, even before that, but as of right now, nothing has been done about the conflict making citizens skeptical about whether or not the drug is legal or illegal within their state.

Due to the increased amounts of marijuana that have been produced since the 1980’s, abuse and addiction rates have skyrocketed causing states who have begun the legalization process to take action. According to the Foundation for a Drug-Free World, domestic marijuana production have increased tenfold over the last twenty-five years: from 1,000 metric tons (2.2 million pounds) in 1981 to 10,000 metric tons (22 million pounds) in 2006. The increased production amounts of the drug have allowed people throughout the United States to obtain easy access, which has contributed to an increase in addition and abuse rates. In 2015, an article released by the National Institute on Drug Abuse reported that 4.2 million Americans met clinical criteria for dependence or abuse of marijuana in the past year—more than twice the number for dependence/abuse of prescription pain relievers. Due to the dangers associated with addiction and abuse, on a state level, as far as regulating the amounts of the drug that can be purchased at one time, states have begun to implement laws. Thus far, laws that have been passed pertain mostly to how much of the substance an individual can buy at one time as well as, age restrictions, making sure that minors do not have access to the drug. For example, In 2015, California passed, The Medical Cannabis Regulation and Safety Act which is compromised of three different legislative works including Assembly Bill 266, Assembly Bill 243, and Senate Bill 643. All of these legislative works passed by California Government officials include rules and regulations that doctors must follow when prescribing medical marijuana. Other states along with California who are passing acts of legislation similar to this are finding loopholes within the rules and regulations that the federal government has established, but there are still numerous conflicts that states are facing in the legalization process preventing more states to take on the legalization process. 

Despite marijuana’s increased popularity, congress continues to resist decriminalizing the drug. Although the federal government refuses to make its move pertaining to marijuana legalization, its use state by state may soon mean almost a quarter of Americans can smoke up at will, not including the many more who can use the drug medicinally. If almost ninety million Americans have access to the drug, why does the federal government still constitute marijuana as an illegal, schedule one drug? Numerous efforts have been made to try and remove marijuana from the Controlled Substances Act, but all have failed, preventing the federal government from legalizing marijuana throughout the nation. Although this is the case, thus far, states who have legalized the drug have seen benefits in numerous ways, but the federal government is still standing in the way of producers and manufacturers of marijuana. In particular, section 280E of the Internal Revenue Code prevents companies from taking any deduction or credit from a trade or business that consists of “trafficking in controlled substances.” In other words, they pay far more than other businesses because they can’t deduct most legitimate business expenses such as labor, materials and other costs of production. The International Revenue Code and other acts of legislation are taxing marijuana manufacturers and producers to the point where it is almost impossible to stay in business. Preliminary results of a survey that a team of researchers from the University of Utah and the University of Michigan have conducted since Colorado legalized marijuana suggest that the conflict between state and federal policies is taking a severe toll on the industry to the point where businesses are paying effective combined tax rates of forty to seventy-five percent. Other than the International Revenue Code, another act of legislation that is preventing marijuana producers and manufacturers from having success is, The Bank Secrecy Act of 1970, which prevents federally chartered banks and credit unions from providing financial services to the cannabis industry. Due to the fact that less than half of cannabis producers in Colorado alone are not financially linked to a bank, this limits them in access to the normal services that companies rely on to grow and operate efficiently. It is obvious that the federal government is attempting to create conflict in the legalization process which is why some states are still extremely reluctant to pull the trigger and begin the legalization process.

According to stats compiled by Raymond Hogler, sixty percent of Americans believe that marijuana should be legal while only four percent of congress thinks the same way. It is almost as if the federal government knows something about cannabis usage that ordinary citizens do not know. It is easy to see that the stats have spoken for themselves. Despite the outrageous taxes inflicted on the marijuana industry, Colorado alone in 2015 generated almost a billion dollars of revenue. States all across the country could be experiencing these same economic benefits, but due to federal regulations, there are numerous ways in which the marijuana industry is being held back from reaching its full potential. In order for this potential to be realized, the federal government must change the classification of marijuana from schedule one to schedule four. In doing this, marijuana could become accessible to the general public, potentially leading to decreased expenses for the government as well as increased revenue for the marijuana industry in states who choose to legalize the drug.