Pot: Elections and Taxes

I was looking at the tax rates for the legal, retail states.

Washington: 37%

Colorado: 29%

Alaska: 25%

Oregon: 20%

Obviously, Washington could bear going down to 25%. Both Washington and Colorado have enjoyed vastly more tax revenue than they planned.

Now from the states that recently passed retail marijuana laws:

California: 15%

Nevada: 15%

Maine: 10%

Massachusetts: 3.75%

You can bet that the top priority for the government in California is to get that tax rate up there. The Massachusetts initiative is just begging for a real job from the legislature. In Maine, they may have ignored how the taxes act on the regulatory process: the better-funded your regulatory agency is, the quicker it works.

Taxes paid enable the state to legislate and regulate the cannabis business; in exchange the state promises protection from the DEA for those businesses. After that, it really doesn’t matter much where the excess revenue goes.

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