The Emperor Wears No Clothes

by Jack Herer

The Prohibitive Marijuana Tax

In the secret Treasury Department meetings conducted between 1935 and 1937, prohibitive tax laws were drafted and strategies plotted. “Marijuana” was not banned outright; the law called for an “occupational excise tax upon dealers, and a transfer tax upon dealings in marijuana.”

Importers, manufacturers, sellers and distributors were required to register with the Secretary of the Treasury and pay the occupational tax. Transfers were taxed at $1 an ounce; $100 an ounce if the dealer was unregistered. The new tax doubled the price of the legal “raw drug” cannabis which at the time sold for one dollar an ounce.2 The year was 1937. New York State had exactly one narcotics officer.*

* New York currently has a network of thousands of narcotics officers, agents, spies and paid informants – and 20 times the penal capacity it had in 1937, although the state’s population has only doubled since then.

After the Supreme Court decision of March 29, 1937, upholding the prohibition of machine guns through taxation, Herman Oliphant made his move. On April 14, 1937 he introduced the bill directly to the House Ways and Means Committee instead of to other appropriate committees such as food and drug, agriculture, textiles, commerce, etc. His reason may have been that “Ways and Means” is the only committee that can send its bills directly to the House floor without being subject to debate by other committees. Ways and Means Chairman Robert L. Doughton,* a key DuPont ally, quickly rubberstamped the secret Treasury bill and sent it sailing through Congress to the President.

* Colby Jerry, The DuPont Dynasties, Lyle Stewart, 1984.