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Aggressive taxes create a black market for goods. To protect the tax revenue the govt must be aggressive about prosecuting unlicensed operators who do not pay t
by mjthrowaway1 4y ago
Aggressive taxes create a black market for goods. To protect the tax revenue the govt must be aggressive about prosecuting unlicensed operators who do not pay taxes. This is counter to the social politics of wanting to end the war on drugs.
As a compromise the govt heavily taxes legal businesses while allowing the black market to thrive with minimal punishment. C’est la vie.
- codewench 4y agoAs compared to now, with a thriving black market, and aggressive prosecution of all parties?
- Sabinus 4y ago>As a compromise the govt heavily taxes legal businesses while allowing the black market to thrive with minimal punishment. C’est la vie. And meanwhile billions were taken out of the black market, and the government increased tax receipts. Don't let perfect be the enemy of good (or in the case, 'better').
- woodruffw 4y agoThis isn't a uniform truth about taxes, even aggressive ones: the evidence so far around marijuana legalization has been than consumers have been more than happy to pay high taxes, because the net cost of marijuana is still similar to or lower than the pre-legal cost. We might eventually see a variant of tax stamp fraud for marijuana, the way some states do for cigarettes. But that's just the nature of these things, like you said, and I think the general trend is a "win," in terms of eliminating WoD policies.
- mjthrowaway1 4y agoIn California the estimate is that 25% of consumers are buying from licensed retailers.
- fknorangesite 4y agoMarijuana has been legal-and-regulated in Canada for years. I assure you that the sky hasn't fallen.