Posted: 1/23/2006 4:50:24 AM EDT
[#15]
Here is some of the discussion of the NFA versus the Marihuana Tax Act from the transcripts of the hearings for the Marihuana Tax Act. The purpose of H.R. 6385 is to employ the Federal taxing power not only to raise revenue from the marihuana traffic, but also to discourage the current and widespread undesirable use of marihuana by smokers and drug addicts and thus drive the traffic into channels where the plant will be put to valuable industrial, medical, and scientific uses. In accomplishing this general purpose two objectives should dictate the form of the proposed legislation: First, the development of a scheme of taxation which would raise revenue and which would also render virtually impossible the acquisition of marihuana by person who would put it to illicit uses without unduly interfering with the use of the plant for industrial , medical, and scientific purposes; and second, the development of an adequate means of publicizing dealings in marihuana in order that the traffic may be effectively taxed and controlled.
The Harrison Narcotics Act (U.S.C. title 26, sec 1040-1054 1383-1391), was designed to accomplish these same general objectives with reference to opium and coca leaves and their derivatives. That act required all legitimate handlers of narcotics to register, pay an occupational tax, and file information returns setting forth the details surrounding their use of the drugs. It further provided that no transfer of narcotics (with a few exceptions, notably by practicioners in their bona-fide practice and druggists who dispense on prescription) could be made except upon written order forms. Since it was also provided that no one except registered persons could legally acquire these order forms and since illicit consumers were not eligible to register, the order-form requirement serves the double purpose of publicizing transfers of narcotics and restricting them to legitimate users.
The same objectives impelled Congress to enact the National Firearms Act (U.S.C. title 26, sec. 1132-1132q) In that act, in order to accomplish them, it was provided that all manufacturers, dealers, and importers of firearms should register and pay special taxes ranging from $200 to $500 per year. It was further provided that firearms could not be transferred except in pursuance of a written order form and upon payment of a $200 tax for each transfer, transfers made to law enforcement officers being excepted. Thus, provision was made for publicizing dealings in firearms and for restricting their use to those persons who would have legitimate use for them.
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from STATEMENT OF CLINTON M. HESTERYou will note that he starts by saying that the purpose of the law was to raise revenue. This was the same thing they said about the Harrison Act and the NFA. Of course, nothing could be further from the truth. The way the enforcement was set up, there was no way you could pay the tax without going to jail in the process. They simply required Federal licenses and then refused to issue any licenses. In a further statement he said: This bill is modeled upon both the Harrison Narcotics Act and the National Firearms Act, which were designed to accomplish these same general objectives with respect to opium and coca leaves, and firearms, respectively.
Under the provisions of this bill all legitimate handlers of marihuana, are required to pay occupational taxes as follows: Manufacturers, compounders, and importers, $24 per year; producers, $5 per year; dealers, $3 per year; practitioners (doctors, dentists, veterinarians, and other of like character), and persons who use marihuana for experimental purposes, $1 per year. These persons, in addition to paying the occupational tax, must register with the collector of Internal Revenue and file information returns as to their dealings in marihuana.
However, as an additional means of bringing the traffic in marihuana into the open, the bill requires all transfers of marihuana to be made in pursuance of the official order forms issued by the Secretary of the Treasury, upon which the details of the transaction are set forth. In order to raise additional revenue and to prevent transfers to persons who would use marihuana for undesirable purposes, a transfer tax is imposed upon each transfer of marihuana. Upon transfer to registered persons, this tax is $1 per ounce, while, upon transfers to non-registered persons, who under ordinary circumstances will be the illicit users of marihuana, a heavy tax off $100 is imposed. Heavy criminal penalties are provided for the manufacturing, producing, or dealing in marihuana without registering and paying the special taxes, for transferring marihuana not in pursuance of an order form, and for acquiring marihuana without payment of the transfer tax.
Thus, the bill is designed, through the occupational tax and the order form procedure, to publicize legitimate dealings in marihuana and through the $100 transfer tax to prevent the drug from coming into the hands of those who will put it to illicit uses.
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from Additional STATEMENT OF CLINTON M. HESTEROne interesting thing to note here is the relatively trivial amounts of the licensing fees. Only one dollar for a research license. But, of course, the best researchers from the best universities still find it nearly impossible to get a license to do legitimate research. This whole thing is a lesson is how to achieve prohibition of something through bureaucracy, even then the law apparently allows for orderly regulation. The discussion goes on and talks about the previous Supreme Court rulings on the relevant constitutional issues. Those are interesting stories in themselves. In short, they were what you might call "rigged" to get the Federal Bureau of Narcotics the additional powers they wanted.
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