But what about the competition?
A friend of mine on a recent visit to Los Angeles was surprised to see so many medical marijuana dispensaries as I chauffeured her around the city to see the sights. I explained to her the ease of getting documentation from a doctor to purchase pot legally. Living in Pennsylvania, where even buying alcohol is severely restricted compared to CA, needless to say she was amazed. But maybe PA could learn something from CA.
Yesterday, CA’s Board of Equalization said the state could see as much as a $1.4 billion per year increase in revenue, thanks to a bill introduced in the Assembly that would further legalize marijuana and impose on buyers a $50 per ounce tax, in addition to sales tax. With CA in dire financial condition, the tax is seen as a much needed revenue generator.
Fun facts: Federal authorities consider CA to be the top pot-producing state in the country and say the 8.6 million pounds grown here make it one of our largest agricultural crops.
But a $50 tax on an ounce of pot if CA legalizes it? Won’t this spur buying it outside of legally sanctioned outlets, say via Mexican drug cartels, to avoid the tax? Would it affect prices of illegal pot or lead to competitive pricing?