6 ms·
> I don't see the point of a whole 25% tax on top of that. I would like to point out that a 25% tax on legally produced marijuana is very low. A 500% tax would
by Tuna-Fish 14y ago
> I don't see the point of a whole 25% tax on top of that.
I would like to point out that a 25% tax on legally produced marijuana is very low. A 500% tax would still be low. Considering the amounts consumed, growing marijuana is really easy and cheap. Without the legislation against it, when grown in volume by professionals it should have a cost per kg nearing that of hydroponic cabbage, or some 1000 times less than it's present street price.
- Jabbles 14y agoA quick internet search suggests the price for "high quality" marijuana is roughly $250 per ounce in California. That's $9000/kg. For comparison the price of Gold appears to be roughly $55000/kg. If you're right about it being as easy to grow as cabbage, then I think it could be taxed quite a lot...
- marshray 14y agoThe problem with taxing something you don't like is the government quickly becomes dependent on the revenue and ends up having a perverse incentive to promote it. My guess is the medical prescription nature of marijuana in California probably inflates its price 10x.
- stephengillie 14y agoWe just deregulated alcohol last year -- meaning the WA liquor control board stores shut down and we can purchase from grocery stores, with a $2.85 tax per 750ml, on top of the 10% sales tax. The justification is that this will funnel more money into the state's general fund. And the nickname "weed" is apparently appropriate -- growers tell me it's a hearty crop.
- agrona 14y agoIn WA, the Sales tax on liquor is 20.5% (plus the per-liter tax)
- drivebyacct2 14y agoI was about to say, having lived there over the summer and headed back shortly, I wish I paid a 10% sales tax on alcohol.
- smsm42 14y agoThat doesn't mean the tax is low. Cabbage is grown like cabbage, and it doesn't have 25% tax on it. And what is 500% tax? You pay 4x your revenue for the right to grow marijuana? It's not a tax then, it's prohibitive fine.
- trhtrsh 14y ago500% tax is isn't 4x revenue. Either the consumer pays the tax, so its 4x the product cost, or the vendor pays it, and prices the tax into the sale price, so the tax us 83% of revenue. Take an example: water costs 2cents/gallon. a 500% tax would make water 10cents a gallon. That would be enough to promote agressive conservation, but not prohibitively expensive. Soda costs <$1/quart at grocery, less at wholesale. But if you buy it at a restaurant, you pay >$1/pint, for 500% markup. Yet it's not prohibitve, because the baseline is sooooo cheap.
- smsm42 14y agoI don't know how much you pay for water in your house, but I know how much I pay. 5x increase would be very substantive expense for me, coming very close to "prohibitively expensive".
- Retric 14y agoMunicipal water costs in the US average around .0015 cents a gallon. Flushing your toilets with .0075 cents per gallon would not be prohibitive, growing crops with .0075 cents per gallon water would be. However, far more water goes to growing crops than flushing toilets. PS: There are actually huge swings in water costs in different areas, which does impact water use significantly.
- sliverstorm 14y agogrowing crops with .0075 cents per gallon water would be Only because everybody else is growing with 0.0015 cents a gallon. If everybody was growing with 0.0075 cents per gallon, food would be more expensive, but we wouldn't suddenly be unable to feed ourselves.
- bitwize 14y agogrowing marijuana is really easy and cheap. Well, they call it "weed" for a reason. :)