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cthulu2016

(10,960 posts)
Tue Mar 4, 2014, 06:03 PM Mar 2014

Will marijuana taxes get so high that illegal marijuana comes back?

Much of the social benefit of ending prohibition is to stop empowering criminals.

Truly legal pot would cost what... about $10 per ounce, tops, right? (When farmers and individuals could just grow the stuff however they felt like. Legal, like geraniums are legal.)

And at that price organized crime has as much interest in reefer as they do in oregano.

But the whole, "make the hippies pay us for their sins," shtick of taxing MJ as a vice creates the framework for the state to be a competitor with organized crime.

The state created $400/ounce pot by outlawing it. Will they eventually create $400/ounce pot by taxing it? So the state just takes over for some cartel? (Like when the corporations muscled the mafia out of Las Vegas... never underestimate the BIG boys.)

If there are special taxes above sales tax then the state is a drug dealer. The state profits from selling weed.

In the way states currently profit from running monopolized lotteries offering odds far worse than the mafia dreamed of on their most avaricious day.


And if the state taxes pot too much then the price of legal pot will be high enough to be undercut by illegal pot, and bingo! Criminal drug activity is back.

Can it happen? You bet! I have met people (vietnamese gang) who run loads of cartons of cigarettes from Virginia ($5/pack) to New York (where taxes make cigs about $10/pack) for illegal resale, so yes... taxes can surely be high enough that crime gets involved to circumvent them.

We will see.

A state monopoly on selling an agricultural product with a $150/ounce tax stamp (certainly a possible thing) may hit snags in the long term.

Seriously... part of the appeal of legal drugs ought to be to cripple organized crime and reduce the need of drug users to amass huge wads of cash.

24 replies = new reply since forum marked as read
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Will marijuana taxes get so high that illegal marijuana comes back? (Original Post) cthulu2016 Mar 2014 OP
as long as it's legal to grow a small number of plants for personal consumption... mike_c Mar 2014 #1
True. I am thinking about the arc of these things over time cthulu2016 Mar 2014 #2
regulations for growing your own are extreme. it's not like you will just pop a few seeds in the msongs Mar 2014 #4
like now...? mike_c Mar 2014 #6
Pretty much Major Nikon Mar 2014 #17
You think 12 12 12 would be a good fertilizer? B Calm Mar 2014 #11
Not for indoor growing Major Nikon Mar 2014 #18
Look at Fox Farm products. U4ikLefty Mar 2014 #23
yeps. Phlem Mar 2014 #3
It's a valid concern, but not for me. tridim Mar 2014 #5
Illegal pot won't ever leave. bravenak Mar 2014 #7
yup--and besides, these are personal relationships of long standing librechik Mar 2014 #8
It might be fun to go to a shop once in a while. bravenak Mar 2014 #9
yes--maybe someone could turn that delivery need into a service here-- librechik Mar 2014 #12
well, there are always those who skirt taxes and black market cigarettes, booze, drugs... hlthe2b Mar 2014 #10
The drug cartel will stop growing it ...so if the price eventually goes up it still won't be worth L0oniX Mar 2014 #13
I think it's inevitable Fumesucker Mar 2014 #14
Yes. liberal_at_heart Mar 2014 #15
No. Alcohol is taxed, but it is easier to just buy it. Throd Mar 2014 #16
and yet, some people still make moonshine Electric Monk Mar 2014 #20
No. Marijuana is more like alcohol than cigarettes. joshcryer Mar 2014 #19
Grow your own. U4ikLefty Mar 2014 #21
People are allowed to make wine, brew beer, and distill liquor for personal use Hekate Mar 2014 #22
Illinois is working hard to keep the illegal trade financially viable ... Scuba Mar 2014 #24

mike_c

(36,281 posts)
1. as long as it's legal to grow a small number of plants for personal consumption...
Tue Mar 4, 2014, 06:05 PM
Mar 2014

...there will be an upper limit to the taxes consumers are willing to pay.

cthulu2016

(10,960 posts)
2. True. I am thinking about the arc of these things over time
Tue Mar 4, 2014, 06:09 PM
Mar 2014

States seem to have an endless weakness for vice money, though they always start out saying they don't. But watching the states' zeal for advertising scratch-off lottery tickets on TV, and putting casinos on every block, I put little past them.

msongs

(67,421 posts)
4. regulations for growing your own are extreme. it's not like you will just pop a few seeds in the
Tue Mar 4, 2014, 06:16 PM
Mar 2014

garden. severe restrictions mean for practical purposes you will only grow your own in sealed rooms indoors

Major Nikon

(36,827 posts)
17. Pretty much
Wed Mar 5, 2014, 02:05 AM
Mar 2014

Which means that while just about anyone can do it, most won't because it will require expenses, resources, and know how.

Phlem

(6,323 posts)
3. yeps.
Tue Mar 4, 2014, 06:12 PM
Mar 2014

I can see it now. People being arrested for buying pot in a state where it's legal.

It'll be legal and we can still fill prisons, win win.

They've cracked down severely in Washington State on medical cannabis.

You can only have 3 OZ. at any given time, 3 plants at any given time.

And the Bonus.......you get to be on a state registry that law enforcement can access anytime.

Don't fuck with Uncle Sam and his money!



-p

tridim

(45,358 posts)
5. It's a valid concern, but not for me.
Tue Mar 4, 2014, 06:19 PM
Mar 2014

I just want to be able to legally grow my own. Nothing more, nothing less.

I've never bought an illegal beer and don't plan on ever buying illegal-legal Cannabis.

 

bravenak

(34,648 posts)
7. Illegal pot won't ever leave.
Tue Mar 4, 2014, 06:36 PM
Mar 2014

280 per ounce compared to 400 and ounce? It's 280 where I'm at, and 40 for an eighth, so I can't see how anybody would pay the extra 120 bucks. Better to just grow your own and skip the bull.

They need to get it down far below black market retail to make it work.

librechik

(30,674 posts)
8. yup--and besides, these are personal relationships of long standing
Tue Mar 4, 2014, 06:41 PM
Mar 2014

in many cases. You don't walk out on your dealer. I've known mine for 35 years.

However, since i live in Colorado, it has been really great to have access to the rec mj, just for variety's sake, and when my man goes on vacay. And not everyone is lucky in drugs like me. They need the connection.

 

bravenak

(34,648 posts)
9. It might be fun to go to a shop once in a while.
Tue Mar 4, 2014, 06:49 PM
Mar 2014

But isn't it better when they just come to your door and charge you less? I know you and I can both appreciate the work of the independent contractor. They even call me to let me know the new specials, give me samples, and will take returns on occasion.
But if a person doesn't have a sales representative that handles their business I can see how the shops could fill that void. They do need delivery personnel , though.

librechik

(30,674 posts)
12. yes--maybe someone could turn that delivery need into a service here--
Tue Mar 4, 2014, 11:22 PM
Mar 2014

it's worth thinking about...

hlthe2b

(102,304 posts)
10. well, there are always those who skirt taxes and black market cigarettes, booze, drugs...
Tue Mar 4, 2014, 06:56 PM
Mar 2014

I think with time, things will calm down (and prices will stabilize at a level where legal is far more sensible than "bargain" bootleg)

 

L0oniX

(31,493 posts)
13. The drug cartel will stop growing it ...so if the price eventually goes up it still won't be worth
Tue Mar 4, 2014, 11:25 PM
Mar 2014

their time to start it all up again.

Fumesucker

(45,851 posts)
14. I think it's inevitable
Tue Mar 4, 2014, 11:37 PM
Mar 2014

Just look at the crap Jerry Brown is spouting about cannabis in the last couple of days, the powers that be utterly fucking loathe hippies and will not willingly do anything that might seem to be friendly to them without some backhanded slapdown to go along with it.

Hekate

(90,724 posts)
22. People are allowed to make wine, brew beer, and distill liquor for personal use
Wed Mar 5, 2014, 02:16 AM
Mar 2014

Don't see why the same laws would not apply to pot once it's legal.

Someday I hope to plant a couple of bushes in my backyard, just to experiment with the herbal uses. I have asthma, so I'm certainly not going to try inhaling smoke-- but I hear there's a lot more things than brownies you can create, and that it's soothing for arthritis, fibromyalgia, and intestinal issues. Us old folks could use some of that...

 

Scuba

(53,475 posts)
24. Illinois is working hard to keep the illegal trade financially viable ...
Wed Mar 5, 2014, 08:00 AM
Mar 2014
(IL) Marijuana rules would require $500K to open

llinois regulators have come out with proposed requirements for opening medical marijuana grow centers and dispensaries — and they come with a steep price tag that advocates say could be costly for consumers.

For dispensaries to sell the pot, state officials proposed a $5,000 nonrefundable application fee, proof of $400,000 in assets, a $30,000 permit fee and a yearly permit renewal fee of $25,000.

For cultivation centers, the Department of Agriculture proposed a $25,000 nonrefundable application fee, $250,000 in liquid assets, payment of $200,000 upon approval of a permit and a renewal fee of $100,000.

The costs are sure to eliminate a lot of potential entrepreneurs, said Joseph Friedman, a pharmacist from Lincolnshire who hopes to open a dispensary.

"Probably 50 percent of the wannabes are now out," he said. "This is going to bring out just the serious players who are well-capitalized and well-credentialed."

Read More: http://www.chicagotribune.com/news/local/ct-medical-marijuana-rules-met-20140211,0,1530418.story
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