California pot taxes lag as illegal market flourishes

[Peter1469]

Dupe thread

[donttread]

California pot taxes lag as illegal market flourishes

If California was ever tough on marijuana growing and distribution before it was legal, I bet California will go all out now that they are losing serious tax dollars because illegal pot appears to have under-bid legal pot.



Someone once said if you want less of something, tax it.

That shouldn't happen. How can people take that kind of risk, grow in that secrecy and still undercut legal sources? Greed on someone's part perhaps. I have always said that taxes should be set not to facilitate this. Of course this is also a short term event at this point.
I heard something really scary about legal pot today. I have not verified it in print yet but was told from a good source that big tobacco is expressing an interest in the pot business. That is not good news! They will almost certainly add addictive chemicals.

[Peter1469]

Here in Washington the legal weed is not expensive. The illegal market here is pretty much irrelevant.

California must be screwing it up.

They are. The tax is around 50%.

[Common Sense]

They should lower the taxes to pull more consumers from the black market.

...but still, they are generating tax revenue that will be in the $200 million ballpark for the year that they wouldn't if it wasn't legal and being taxed. Better than nothing.

[Peter1469]

They should lower the taxes to pull more consumers from the black market.

...but still, they are generating tax revenue that will be in the $200 million ballpark for the year that they wouldn't if it wasn't legal and being taxed. Better than nothing.

They will probably keep the taxes high and go jack-boot on the illegal market.

[Common Sense]

They will probably keep the taxes high and go jack-boot on the illegal market.

Not a great strategy. They've gone after the illegal market for decades with little to no effect on it.

[Tahuyaman]

They are. The tax is around 50%.

They will never learn.

[Tahuyaman]

They should lower the taxes to pull more consumers from the black market...

But liberal's said the state's should legalize it and tax the $#@! out of it. They said it would generate billions in additional tax revenues. Are you now saying high taxes is a bad thing?

[Peter1469]

Not a great strategy. They've gone after the illegal market for decades with little to no effect on it.

Half heartedly. Now that their tax dollars are at stake they are going to step up enforcement.

[donttread]

They are. The tax is around 50%.

Bingo. Greed , stupidity and not consulting with ... me (LOL) or anyone with half a brain , were all mistakes.