WASHINGTON (CNN) - On Thursday, Oregon Rep. Earl Blumenauer joined forces with Americans for Tax Reform President Grover Norquist to fight a tax code that hurts legal cannabis businesses.
Blumenauer says this code is misapplied and creates an effective tax rate two to four times greater than that of other small businesses.
"There is an insane policy that we have now that says that if you are involved with marijuana in a legal business you cannot have a federal financial institution give you a bank account, so forcing it to be all cash is really great if you're concerned about money laundering, tax evasion. I mean it's goofy. It's goofy," he said.
Last month, the justice department said it would not challenge state laws that legalize marijuana and it will focus federal enforcement on serious trafficking cases.