Politicspolitics

Fri Jan 11, 2019, 01:33 PM

California pot taxes lag as illegal market flourishes

Deep in Gov. Gavin Newsom’s new budget is a figure that says a lot about California’s shaky legal marijuana market: The state is expecting a lot less cash from cannabis taxes.

The Democrat’s proposed spending plan, released Thursday, projects the state will bank $355 million in marijuana excise taxes by the end of June. That’s roughly half of what was once expected after broad legal sales kicked off last year.

Industry experts say the diminished tax income reflects a somber reality: Most consumers are continuing to purchase pot in the illegal marketplace, where they avoid taxes that can near 50 percent in some communities.

https://apnews.com/37866c4831844c5f8b82ddd87c2fe7c6

Duh

16 replies, 188 views

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Response to Let it go (Original post)

Fri Jan 11, 2019, 01:39 PM

1. Unexpectedly!*

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Response to Let it go (Original post)

Fri Jan 11, 2019, 01:42 PM

2. I thought legalization was supposed to destroy the illicit drug market.

"Let people buy them openly and they won't risk going to jail," we were told.

What? High tax rates drive economic activity underground? Especially if the product is hard to trace?

That's so Milton Friedman!

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Response to Charlie Mike (Reply #2)

Fri Jan 11, 2019, 01:49 PM

3. That was - as always - a lie. Legalization was always about Legalization.

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Response to Let it go (Original post)

Fri Jan 11, 2019, 01:55 PM

4. Some might point out that the Democrats in California are a greedy bunch. ...

However to be fair it takes a lot of tax money to support your goals of open borders and being a sanctuary state.

Soon California will begin tearing down the immoral walls the evil Trump is building on its border and greeting anyone and everyone from anywhere and everywhere into its wonderful state. Life in California will never be the same again. It will be a paradise for liberal Democrats and socialism.

Here we can watch the future Saint Pelosi discussing the immorality of Trump’s wall.


(Note: in case it is necessary this post is )

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Response to Let it go (Original post)

Fri Jan 11, 2019, 02:04 PM

5. The regulations, and fees, and taxes make it too burdensome.

So off to the black market it goes.

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Response to Let it go (Original post)

Fri Jan 11, 2019, 02:19 PM

6. And California's "budget surplus" was based on this estimate as well

 

Make something legal.

Then tax the crap out of it.

Then be surprised when a different black market emerges to avoid the tax.

Think about it. No more "drug busts" -- just "POSSIBLE tax evasion."

I might even open illegal MJ operations there since there is zero reason not to.

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Response to freedumb2003 (Reply #6)

Fri Jan 11, 2019, 09:50 PM

12. there is no budget surplus when they're not counting CALPRS debt...

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Response to PrescientWon. (Reply #12)

Sat Jan 12, 2019, 12:37 AM

14. The new budget uses some of the surplus to pay down pension debt.

Fortunately, unfunded liabilities are like a home mortgage and the state can make payments over 20-30 years to pay down the long term debt.

"Gavin Newsom’s budget makes big down payment on California pensions"

By making early payments on California’s unfunded pension promises, Gov. Gavin Newsom’s first budget aims to free up billions of dollars for schools in coming years.

His budget calls for $7.8 billion in payments above what is required by law to the California Public Employees’ Retirement System and the California State Teachers’ Retirement System.

https://www.sacbee.com/news/politics-government/the-state-worker/article224243705.html#storylink=cpy

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Response to Let it go (Original post)

Fri Jan 11, 2019, 03:03 PM

7. gee, didn't see that one coming, did we? now the Ca government is the cartel. DERP

My GOD lefty is fucking stupid

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Response to Let it go (Original post)

Fri Jan 11, 2019, 03:53 PM

8. Just watch

With taxes on the line Sacramental will soon go balls out on enforcement.

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Response to Let it go (Original post)

Fri Jan 11, 2019, 04:09 PM

9. If they hadn't gotten so absurdly greedy with the tax rates...

...they'd be enjoying a similar windfall to most other states that have legalized. Idiot business-as-usual political hacks...

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Response to Tovera (Reply #9)

Fri Jan 11, 2019, 05:03 PM

10. It's not just the state - Local governments including the city of San Diego are imposing MORE taxes.

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Response to Duke Lacrosse (Reply #10)

Fri Jan 11, 2019, 07:15 PM

11. They piled more on here in Portland, too.

Not to the ridiculous levels as in CA, though...

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Response to Let it go (Original post)

Sat Jan 12, 2019, 12:29 AM

13. An additional $355 million? Yes please!

This is only year one, revenues will increase over time. Thanks pot smokers!
Governor Newsom has proposed a $144 billion general fund budget. That's up 4 percent from the current year and it predicts a $21.4 billion surplus from California's healthy tax collections and slower growth of state health care costs.

$21.4 billion will be the largest state surplus for California since at least 2000.

The budget devotes $13.6 billion of the windfall to build the state's reserves and to pay down state debt and its growing pension liability. It's in keeping with new Governor Newsome's promise to follow the fiscally frugal path of his predecessor, termed-out Governor Jerry Brown.

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Response to Let it go (Original post)

Sat Jan 12, 2019, 01:20 AM

15. The state should be happy with anything they get, as they dont deserve shit

On that note, I only buy black market weed unless I’m pressed for time.

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Response to Let it go (Original post)

Sat Jan 12, 2019, 01:46 AM

16. Shaky? Not if $355 million is better than nothing.

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