Sibirsky wrote:Antarticaria wrote:
The tax is for pot DEALERS and GROWERS through licencing just like the licencing for hard liquor which in the case of pot will pay for itself and then some.
The person that started this line of debate wanted to "tax the shit out" marijuana.
It's moronic. The black market in weed is probably the best functioning black market in physical good. You cannot tax the shit out of it. People will continue to buy illegally. There is some premium to be paid for buying it legally, and safely, at a licensed dealer. But taxing the shit out of it, will make the price disparity too high.
Even applying just a normal sales tax, and gradually transitioning to a higher excise tax won't make the market go underground. There isn't a huge underground tobacco or alcohol market. Obviously if it's legalized tomorrow, with a $50 excise tax, people won't go buy it legally.
But if it's legalized tomorrow with a normal sales tax applied, people will choose legally buying it from a store that will be guaranteed to provide a safe, quality product, rather than buying it from a sketchy dealer. And then as the underground market begins to disappear, taxes can go up slowly. Tobacco taxes are at all time highs in many countries, yet the underground market isn't significantly large.