Tuesday, February 25, 2014

A Pot Full of Money

Colorado was the first state in the nation to allow retail marijuana shops.  As of January 1, you can go into a store in Denver, Pueblo, Aspen, and 29 other cities and leave with up to an ounce of marijuana in hand.  January’s sales tax revenue are trickling in for these cities and it seems as if the passing of this law is living up to the intended outcome. 

Now I am not, and have never been, a drug user – I’ve never even smoked a cigarette – and I have no desire to be one, so I have no horse in the race on this one.  But I do have to say, looking at those sales tax revenues…Holy Cow!  With pot going for upwards of $400 an ounce, these cities are raking it in.  After just one month of sales, Colorado is predicting almost $100 million in additional 2014 tax money being brought in due to legalization – all earmarked for public health, substance abuse programs, and schools. 

Since I’m a liberal I try not to complain too much about taxes because we all benefit greatly (in some way or another) from them.  But I do REALLY like the idea of something that is not a necessity being heavily taxed as opposed to things we need regularly.  If you want to use it, you can but you’re going to pay for it.  The amount of sales tax added to the pot in Colorado is comparable to California’s sales tax on EVERYTHING. 

The state of Washington has also legalized recreational pot use, and the law will go into effect later this year.  Other states are watching how this all goes down, and it even looked like it would come to a vote here in California later this year (but now it seems like it is off the table due to solving logistical issues in a such short amount of time).  With the sales tax potential as well as keeping pot users out of overcrowded jails, I hope that we can move forward on this eventually. 

10 comments:

  1. Ah yes. This one has been a no-brainer for years. What's needed now is a grading system and quality controls so you know you aren't getting crud or where two identical ounces are poles apart strength-wise.
    Of course if they are really smart there will be studies of users and not from the point of view of selling more but what in the body is causing the need.
    I don't smoke, but I did try a twice and felt so bad with a mood dip I leave a room now if it's about.

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    1. I know of only one person in my life who actually uses it and enjoys it. Most I know who have tried it have had similar experiences and in addition such bad paranoia, I hardly understand the appeal. :)
      Regardless, I do think the quality controls are important, and I don't know enough about what grower requirements are, if any. I do know they have to apply to be a grower, retailer, etc. So I 'm sure there is something, but I'm not sure what that is.
      I do wonder if states begin to legalize it if those studies will be pursued or completely pushed away since it's becoming a commercial item and they don't want to limit sales. It certainly can't be as bad it cigarettes and we know what causes that need.

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  2. I am just trying to understand why anyone would buy pot legally for $400 an ounce if you could get it illegally for $200.

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    1. Ha! I know, right! The things I have read said the state's initial projections were based on the $200 street value and right now due to new crops and what not, the price is higher in general. On the other hand, being a rule follower, if I were a user I certainly would rather pay more than break the law. :) But who knows.

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  3. With all the problems we have, it seems like this one could do with less attention.

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    1. Oh, I don't know. A few of our problems - state's budget deficits and criminalization of recreational pot users which leads to tons of other societal problems - could be solved with legalization.

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  4. A friend of mine told me that at an in-service -- held before Colorado, et al., went through with their legalization -- a local law enforcement representative said that the only reason pot wouldn't be legalized is because there was no way pot could be quantified in the bloodstream (like alcohol or other drugs). Now, I'm no doctor, so I don't know about all that. But I've always believed that the tax revenue that could potentially be made from the legal sale would be epic. It's nice to read that I was right! :-)

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  5. I have heard that pot is more difficult to test quickly (like a breathalyzer) and accurately due to it's lingering effects. In my observations of those under recent influence they don't want to drive a car or work or anything that doesn't involve sitting around and eating. :)

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  6. I think what will occur is a true study of the effects and not tilted and biased tripe produced more for propaganda than any real attempt to deliver information.
    It may well be that some are profoundly allergic. It may well be it's poison for some. And it may well be that it's effects are hugely exaggerated, more placebo than drug.

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    1. For so long it has been such a taboo, and some people are having a very hard time with the legalization. It will be interesting how the gradual release of its ban and possible further study will change the mental block about it.

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