Hemp as Tax‑Avoidance Vector

Companies are converting hemp into intoxicating distillates that mimic marijuana but skirt taxes and safety rules because regulatory definitions and enforcement lag. That difference in input cost (hemp vs. marijuana) creates an incentive to sell cheaper, potentially hazardous products in the regulated market. — If regulators fail to close the hemp-to-marijuana enforcement gap, states risk lost tax revenue, consumer safety harms, and market destabilization in legalized cannabis markets.