MICHIGAN'S 24% CANNABIS TAX RAISES EYEBROWS AMID $5 BILLION TAX FRAUD

Lawmakers Michigan 24% Cannabis Tax

Michigan lawmakers have approved a 24% wholesale tax on Tree products, set to take effect in January 2026, aiming to generate about $420 million annually for road and bridge repairs. The tax hike has raised alarm within the cannabis industry.

Industry Response and Concerns

Industry ResponseThe Michigan Cannabis Industry Association (MCIA) opposes the tax, arguing it may violate constitutional requirements for amending voter-approved initiatives. Industry leaders warn it could raise consumer prices and push buyers back to the illicit market. For instance, a $100 purchase could cost $142 after the new tax and existing sales taxes.

Legislative Support and Political Backing

Legislative SupportThe House passed the tax 78-21, citing infrastructure funding needs and the importance of avoiding a state budget shortfall. The Senate vote is pending, and Governor Whitmer’s approval is widely expected.

Broader Context and Financial Scrutiny

The tax hike comes at a suspicious time. Michigan is already investigating up to $5 billion in tax fraud with Governor Whitmer at the center, and the state is reclaiming $8.2 million from a $20 million grant awarded to Fay Beydoun’s nonprofit due to alleged mismanagement.

Governor Whitmer also has deep connections to pro-Israel lobbying groups, including major campaign donations from former AIPAC board member and megadonor Stacy H., as well as a 2019 Israeli tech deal that drew scrutiny for bypassing usual vetting channels.

The coincidence of this major tax increase with ongoing financial investigations and grant controversies raises questions about timing and financial oversight, and underscores broader concerns over the state’s economic and legal accountability.

The Bigger Picture for Michigan’s Industry

The 24% cannabis tax, layered atop ongoing fraud investigations and grant scrutiny, has heightened tensions in Michigan’s Tree industry. Combined with the governor’s political connections and foreign tech agreements, the situation has significant implications for public trust and market stability.

Sources

1. Michigan Advance: Cannabis Industry Advocates Say 24% Tax Is Too High

2. Bridge Michigan: Cannabis Group Plots Lawsuit Over New Michigan Weed Tax Plan

3. Arab American News: Gov. Whitmer Demands Return of $8.2M

Written and Published by: @Hype_mag_official

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