Bill Maher and Woody Harrelson Criticize California’s Business Climate on Podcast

Hosts of “Club Random” Share Struggles of Cannabis Entrepreneurship

On a recent episode of Bill Maher’s podcast, “Club Random,” comedians Bill Maher and Woody Harrelson delved into the challenges of running a cannabis business in California. The pair co-own The Woods, a cannabis dispensary and lounge located in West Hollywood. Their candid discussion highlighted the difficulties of maintaining a business amid the state’s complex regulatory environment.

California’s Business Landscape: A Tough Nut to Crack

During the podcast, Maher voiced his frustrations about the strenuous climate for business in California, stating, “It’s not easy to make a business work here.” His remarks reflect a growing sentiment among entrepreneurs in the state who feel the pressure of high taxes and regulations.

Harrelson chimed in, echoing Maher’s sentiments: “California just messes with every business.” This remark sheds light on the broader issue of the state’s overall business environment, which has prompted many companies to reconsider their operations.

Taxation Woes: The High Cost of Doing Business

One major point of contention during their discussion was the exorbitant tax rates imposed on cannabis businesses in California. Maher criticized the state’s treatment of cannabis, suggesting it is treated “like poison” rather than a legitimate business venture.

Harrelson elaborated on this issue, remarking, “They treat it like you’re lucky that we allow you to do this, and so we’re going to tax you 35%.” This sentiment resonates with many cannabis business owners who face tax rates that exceed 30% when local taxes and the state’s sales tax are taken into account.

The Impact of High Taxes on Entrepreneurs

California’s 15% gross receipts tax on cannabis is one of the highest in the nation. Although the rate was briefly increased to 19% in 2025, it was later rolled back to 15%. Despite this adjustment, many entrepreneurs like Maher and Harrelson remain dissatisfied with the overall financial burden.

As Harrelson noted, the tax implications create a strained landscape for cannabis entrepreneurs: “There’s nothing we can do when the government is charging 35%. Like they can’t tax us 35%, it’s not right.”

Rising Concerns: Capital Flight from California

The struggles of Maher and Harrelson are reflective of a larger trend in California, where capital flight is becoming an increasingly pressing issue. The state has experienced a net loss of businesses in recent years, with many companies relocating to states with more business-friendly environments. The San Francisco Bay Area, in particular, has seen a significant exodus, including a net loss of 156 headquarters since 2018.

The Future of Cannabis Business in California

Despite the challenges, Maher and Harrelson reported that business at The Woods is picking up. Their optimism, however, is tempered by concerns over the ongoing regulatory and tax pressures facing the cannabis industry. The potential for growth exists, but only if California can create a more conducive environment for entrepreneurs.

Conclusion

Bill Maher and Woody Harrelson shine a spotlight on the serious challenges facing entrepreneurs in California, particularly in the cannabis sector. As they candidly discussed on “Club Random,” high taxes and complex regulations continue to drive businesses out of the state, highlighting an urgent need for reform. For those considering entering the cannabis market, navigating California’s business climate remains a daunting task.

To explore more about California’s evolving business landscape, click here for additional insights.