Friday, August 5, 2011

Why "Taxing the Hell out of it" won't make it "way too expensive."

In response to a specific, but common comment on a particular article:
"the Government will only tax it to death still causing you to spend more than it's worth."
Please read to see the fallacy in this and to see that action must be taken now to kill the black market.

Marijuana's illegal to have, but low-risk and people are getting over the lies about its dangers.
Demand--UP UP UP.

It's more illegal to grow & distribute, and very high risk, and requires sophisticated operations for any reasonably sized grow.

The flower of a weed which costs only $300/lb to grow, clip, & cure going to dealers for $2,000-$6,000/lb with a total street value of ~$7,680 ($60 per 1/8oz). And hence the effect of people shooting each other across the Mexican border over it. They don't over Corona.

Norml goods don't see a 96.1% margin from manufacturer from consumer. Factor in industrial methods, lower risk-wage, lessened security, and heightened usability of space & natural resources and pretend then that the best stuff has a conservatively high wholesale value of $300/lb ($2.34 per 1/8oz)

The government would have to levy approximately a 2,563% excise tax on sale to make it more expensive than now.
Individual community proposals alongside California's Prop 19 called to tax marijuana sales 5-15%.

*Note that it would take some time to reach the advanced and low equilibrium price I outlined above, and that even if policy doesn't allow for supply to be industrially produced, price will still drop significantly in a grower & merchant's rush to legally satisfy public demand.