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RE: Early Marijuana Results from California are in: Black Markets to Continue

in #news7 years ago

This is something that the legislators just don't understand. I, as a consumer, don't have much of an incentive to follow the law and pay a 34% tax rate on a $20 purchase. It's an unnecessary upcharge just to follow the law. A reasonable sales tax would be more acceptable but this is ridiculous to see. It de-incentivises sales and therefore reduces tax revenue compared to keeping it lower at the same rate as alcohol/food in general. My fear is that they'll be too stupid to realize the loss of revenue is from this tax and then they'll increase the tax to combat it; doubling down on a poor decision.

This will surely let the Black Market fester.

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