http://www.nytimes.com/2013/04/25/us/colorado-considers-marijuana-tax.html?ref=us&_r=0
This article shares the ideas regarding marijuana being legalized for recreational use, and how it could be taxed. This states that legislators are considering the excise and sales taxes on marijuana of up to 30% combined. This being passed could potentially generate millions of dollars in state tax revenue and could stimulate their economy. The goal of this tax is to be high enough to finance the administration of new laws, but not high enough that people are driven away and turn to the black market. Task force members and lawmakers hope to find the right balance between taxing too high and too low.
Not all involved are agreeing with taxing marijuana. For example, Michael Elliott, executive director of the Medical Marijuana Industry Group said that he feared that a too high of a tax would make it too difficult for marijuana business to survive because the black market in Colorado is too involved. Also, people are worried about safeguarding to make sure it doesn't end up with children. There are many different stand points on this idea, and an interesting article to read.
If the sales of marijuana is heavily taxed people will turn to the black market because they do not want to pay more than needed. Although some people do not want to buy marijuana on the black market and rather go through a safer bet such as a dispensary. I think these taxes will benefit the economy, but it could also hurt the sales of the dispensaries.
ReplyDeleteOne of the primary arguments for legalizing marijuana was the state incentive for tax revenue. Like all other goods, marijuana should be taxed when purchased. It's a tight line to walk; it might be wise to propose a low tax to start and then slowly hike it up, monitoring public response at each step. Colorado is certainly setting a precedent in this industry.
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