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Cannabis execs complain over lack of tax reform despite making bank

Top executives from leading cannabis companies in Canada have voiced their dissatisfaction with the absence of proposed tax reforms in the federal budget, despite their thriving personal financial performance in recent fiscal years.

The CEOs of Tilray Brands (TSX: TLRY), Village Farms International Inc. (TSX: VFF), and Canopy Growth Corp. (TSX: WEED) have all lamented the government’s failure to address what they perceive as a flawed excise tax regime that disproportionately burdens legal cannabis businesses.

Tilray Brands CEO Irwin Simon, citing concerns over the current tax structure, stated, “We are disappointed that the Canadian government did not take the opportunity to implement cannabis tax reform in the budget. The current tax structure places an unfair burden on legal cannabis companies and hinders our ability to compete with the illicit market.”

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What’s going on?

• US Lawmakers Introduce Bipartisan Bill to Sanction Chinese Firms Aiding Russia (theDeepDive)

• EV maker Lion Electric cuts about 120 jobs as it looks to reduce costs (BNN)

• Google terminates 28 employees for protest of Israeli cloud contract (Reuters)

• “Spending 20 Times More On Salaries, Bonuses Than On Actual Infrastructure”: Conservative MP Criticizes Canada Infrastructure Bank (theDeepDive)

• TikTok Ban Measure Attached to House Foreign Aid Bill, Boosting Odds of Passage (WSJ)

• Parched Texas growing season looms as US, Mexico spar over water treaty (Reuters)

• Biden Administration Expected to Reject Controversial Alaska Road Project (theDeepDive)

• IMF Urges Asia’s Central Banks to Avoid Closely Tracking Fed (Bloomberg)

• Elon Musk says in email that Tesla sent ‘incorrectly low’ severance to some laid-off employees (CNBC)

• Cost of Natural Gas Goes Negative (theDeepDive)

• Home Sales in March Had Biggest Decline in 16 Months (WSJ)

• Severe Storm Wreaks Havoc Across the United Arab Emirates (theDeepDive)

What’s the latest?

• US Jobless Claims: The number of Americans filing for new unemployment benefits remained steady at 212,000 for the week ending April 13, according to the U.S. Labor Department. This figure matches the previous week's total and is slightly lower than the 215,000 claims forecasted by economists.

• Brain Drain Fear: Recent adjustments to Canada's capital gains tax in the 2024 federal budget have sparked significant concerns among the business community. By raising the inclusion rate from 50% to 67% for businesses and trusts, the government expects to generate an estimated $19 billion in revenue. Critics argue that this increase could deter investment and drive talent and startups out of Canada, worsening the country's already lagging productivity.

• Google Firings: Google's has terminated 28 employees following protests against its cloud contract with the Israeli government. The employees involved in the protests reportedly disrupted operations at several office locations, which Google described as unacceptable behavior violating company policies.

• Gold Heist: Nine individuals, including two Air Canada employees and an alleged firearms trafficker, have been charged in a major theft of nearly $24 million in gold and cash from Toronto's Pearson airport. The heist, the largest in Canadian history, involved 6,600 gold bars stolen under the guise of a fraudulent airway bill. The police investigation also uncovered a linked attempt to traffic firearms into Canada.

• SpaceX Collab: Northrop Grumman is collaborating with SpaceX on a classified project to develop a spy satellite network that provides high-resolution Earth imagery, enhancing the U.S. government's surveillance capabilities. This partnership aims to diversify government reliance on single contractors for sensitive intelligence tasks. The project involves equipping SpaceX satellites with sensors from Northrop Grumman, which will also handle their testing.

Uranium is now a 100% demand driven market

The stock market and stuff

• Walmart Settles $45 Million Class-Action Lawsuit over Alleged Overcharging (theDeepDive)

• Trump Media tells shareholders how to block their DJT stock being loaned to short sellers (CNBC)

• Nvidia’s Biggest Manufacturer Doubles Down on AI (WSJ)

• Alaska Airlines 2024 forecast tops estimates after loss from Boeing Max grounding (CNBC)

In the juniors

• Lion Electric: The Third Electric Vehicle Maker To Lay Off Employees This Week (theDeepDive)

• EMP Metals Sees DLE Pilot Plant Begin Operation In Saskatchewan (theDeepDive)

• Lithium Chile Prepares To Spinout Gold, Lithium Assets In Chile (theDeepDive)

• Lithium Americas Falls 27% In Pre-Market Trading Following US$275 Million Financing (theDeepDive)

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