Case in point: Colorado's recently-approved marijuana laws have hit a snag. Many banks and credit-card companies will not process pot-sale credit-card transactions because they fear the fallout from federal laws that still make marijuana illegal. Without credit-card transactions, the tax bonanza (almost $20 million this fiscal year with skyrocketing potential thereafter) Colorado expected from marijuana sales threatens to go up in smoke as pot is forced into an all-cash business: If you can't track it, you can't tax it.
I just have a feeling that clean-living advocates are about to have a change of heart ... but of course, as usual, they will not take responsibility for it.
Marijuana is considered an illegal drug by the federal government, and laws such as the Bank Secrecy Act carry severe penalties for banks. Last week, U.S. Attorney General Eric Holder said the feds will soon issue regulations opening banking services to state-sanctioned marijuana businesses.