PratchettFan
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- Jun 20, 2012
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Gee, I recall writing that this is exactly what would happen. If the tax is too high the incentive to cheat becomes enormous and since growing pot isnt exactly rocket science people would be bootlegging it and avoiding the tax.It looks like the market is working itself out, that and the State realizes it has to drop taxes a bit to cut out the bottom end black market that is created when something legal is over-taxed (as opposed to the top end black market that is created by making something illegal)
Colorado s Recreational Marijuana Prices are Falling
After about 18 months of legal recreational marijuana sales in Colorado, the market keeps getting bigger. And now a new survey shows that pot prices in Colorado are actually declining, even as the number of customers increases.
One reason the cost of getting high is getting lower is because of increased competition from new dispensaries and the expansion of growing facilities. The limited number of dispensaries allowed to sell recreational marijuana during much of the first year of legal sales were able to keep prices relatively high, but prices have come down as more and more entrepreneurs get dispensary licenses and enter the market. At the same time, the report by Nicholas Colas, Convergex’s chief market strategist, notes that “it is also a natural result for any maturing industry as dispensaries try to find the market’s equilibrium price.”
Meanwhile, the state’s sales totals could receive a sizable boost on Sept. 16, when Colorado Governor John Hickenlooper will institute a one-day repeal of the 10% sales tax for recreational pot sales. After that one-day tax holiday, the sales tax will be permanently downsized to 8% in a move meant to further squeeze out the state’s black market for the drug, which is still illegal on the federal level.
My other prediction is that the criminal networks that developed to grow, import and distribute pot would not simply dry up and blow away but would start pushing harder drugs like cocaine and meth. I havent seen evidence of that yet but I am certain it is coming.
Make cocaine and meth legal. It isn't rocket science.
Lets start with pot first.
This isn't about pot. At least not for me. I'm not going to complain because those laws are going away, but drug prohibition laws have been incredibly destructive to this nation. I am not opposed to pot drug laws because I am pro-pot. I am opposed to all drug laws because they fix nothing and cause immense harm. The solution to addiction is medical treatment, not a cage and an "ex-con" label. We could provide that treatment, free of charge to the addict, for a tiny percentage of what we currently spend to destroy the addict's life and enrich criminals. Hell, the tax revenue would pay for that and we'd have a net gain - and still not have to destroy their life. If the purpose of drug laws is to protect people, then let's do something that actually accomplishes that goal.