Author Topic: Reefer Madness: Demand for Illegal Pot Soars in California Due to High Taxes  (Read 265 times)

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Offline Elderberry

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JONATHAN TURLEY 11/25/2022

It appears that illegal pot growers are giving thanks this holiday for California lawmakers who legalized pot only to fuel demand for illegal cannabis due to massive taxes. It is the same problem that I wrote about in New York’s program in an earlier Wall Street Journal column. Politicians continue to pile on taxes as if they have no impact on pricing and demand. It just seems like free money if you ignore every economic metric and principle.  Even with a recent recognition that they have killed their own market, California lawmakers are being criticized for offering too little too late in terms of tax relief.

Sgt. James Roy of the Riverside County Sheriff’s Department is quoted in Fox News as saying that “The illegal industry is competing with the legal industry and essentially putting them out of business.”

Despite being a relatively new industry, state and city officials imposed thick layers of regulations, charges, and taxes on the budding businesses. Some estimates put the taxes at 70 percent of current costs.

Even with a recent recognition that lawmakers strangled the industry, a temporary tax cut is not expected to be enough to make lawful businesses competitive. There remain a host of other taxes, required regulatory obligations, and even bars on claiming certain expenses used by other businesses. The result, according to one study, is that “the effective tax rate on marijuana in California ranges from $42 to $92 per ounce, depending on the jurisdiction, compared to an estimated wholesale production cost of $35 per ounce.”

More: https://jonathanturley.org/2022/11/25/reefer-madness-demand-for-illegal-pot-soars-in-california-due-to-high-taxes/


Offline GtHawk

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To all those that believed it when the proponents of legalized marijuana said legalization would eliminate illegal pot farms and dealers I say

Offline DB

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The politicians wanted to be the gate keepers where they got kickbacks to sign off on a limited number of dispensaries. The limited number of licenses made them very valuable - all out of thin air.

Offline mrpotatohead

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Can you legally grow it yourself for your personal use (like that would happen)?
Romans 5:8 "But God demonstrates his own love for us in this: While we were still sinners, Christ died for us."

Offline GtHawk

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Can you legally grow it yourself for your personal use (like that would happen)?
https://cannabis.ca.gov/consumers/whats-legal/

Growing cannabis at home
You can grow up to 6 cannabis plants at home if you’re at least 21 years old. If you turn the cannabis into a product, you cannot use volatile solvents like butane or propane.

Some cities and counties have specific rules for home grows, such as permit requirements or requiring grows to be indoors. Contact your local office to learn the rules in your area.

Offline mrpotatohead

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https://cannabis.ca.gov/consumers/whats-legal/

Growing cannabis at home
You can grow up to 6 cannabis plants at home if you’re at least 21 years old. If you turn the cannabis into a product, you cannot use volatile solvents like butane or propane.

Some cities and counties have specific rules for home grows, such as permit requirements or requiring grows to be indoors. Contact your local office to learn the rules in your area.

I wonder if that's 6 plants per person or per house...lol.  I wonder what constitutes a house...condo...apt.?  I'd venture to guess the authorities could care less.
« Last Edit: November 27, 2022, 11:33:35 pm by mrpotatohead »
Romans 5:8 "But God demonstrates his own love for us in this: While we were still sinners, Christ died for us."