3 years ago
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What's The Best Way To Tax Marijuana? It Depends On What You Want To Accomplish: Raising Money Or People Smoking Less
Last year, Colorado voters legalized recreational marijuana, partly because backers promised that a tax on marijuana would help fund schools. Colorado decided to use both kinds of taxes for marijuana: A 15 percent tax collected during production (that adds to the posted price the consumer sees), and a 10 percent sales tax (that doesn't show up until the moment of purchase). Dan Pabon, a state representative who helped create Colorado's marijuana taxes, says lawmakers there talked about a lot of ways they could tax pot. In the end, they split the difference. "We wanted to make sure marijuana paid for itself," he says.
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well if u want to attack drug dealers you go after what hurts the most right? the wallet. Seems reasonable enough
I think though, one aspect of legalizing marijuana is that drug dealers will become obsolete/won't be able to compete with prices and quality one could get from a regulated store, cutting them out altogether
interesting economic concept here, have you heard of the tax multiplier (-mpc/1-mpc)? i'm studying for my macro final so this is a helpful analogy
I think that you can find a solid balance. But @curtis doesn't the tax multiplier not apply in this case because cannabis has never been taxed before. As I understand it that means you can raise taxes on it while still lowering the price to consumers-->stimulating the economy.