As with the failed nationwide ban on alcohol during the Prohibition era, federal pot prohibition is coming to an end because of bottom-up policy reforms.
The conflicts between state and federal cannabis laws are becoming clearer all the time. For example, in July, the IRS and, later, the Ninth Circuit Court of Appeals ruled against the proprietors of the Vapor Room, a medical cannabis dispensary in San Francisco, for taking the standard deductions associated with running a business—inventory, rent, salaries, uniforms, etc.—on their federal tax forms, just as millions of other businesses do every year.
Why did the Vapor Room lose its case, despite having a valid operating license and being run in strict compliance with state and local laws, as per the Justice Department’s decision to allow cannabis commerce…
