Colorado's missing marijuana taxes...Not Really..

So this was an interesting story on CNN today, which I have some thoughts about.

This is nothing more but cleverly placed opposition to the legalization movement IMO.

Link.

Now firstly, let's establish that this article includes NO information about what the actual tax revenue has been, nor does it highlight any other information about the taxes involved other than the percentages on recreational vs medical.

Pot smokers are still buying on the black market: The state thought more people would migrate out of the black market. But only 60% of people who want pot in Colorado this year will buy it through legal channels, according to an estimate from the Marijuana Policy Group.

Of course they are. The point of legalizing pot was to drive the price DOWN to the point where it was no longer worth selling illegally. This was something echoed early on in the years and months leading up the ballet votes and legislation talks.

Plus, any Coloradan over 21 can grow up to six plants for personal use. If they are selling it on the black market, that's even more tax revenue the state's missing out on.

It's not the black market if you grew something legal and then sold it to friends. Please, let's not misconstrue the realities involved here. Anybody who thought the "black market" would disappear entirely is an idiot.

Lawmakers were too optimistic in their revenue forecasts: State law requires the government to refund taxpayers if it collects more than expected.

Wanting to avoid returning money collected from retail marijuana sales, lawmakers made "rosier" projections, state lawmaker Jonathan Singer said recently.

Excuse me? This is just government greed at it's best. Of course they should be paying out some of that tax money to the people in the form of royalties. After all, as listed in this article, only 23% of all users are classified as medical, the rest are recreational. Which means regular Joe and Jim are driving all of this revenue, job creation etc..

And they admit, at the last second:

To be fair, Colorado is in uncharted territory as the first state to legalize the drug for recreational purposes, and it's only been six months.

Yes, how about we wait to have some data before we start making claims about what has worked and what hasn't worked.

Please do not discuss recreational use of MJ within this thread, the only thing to be discussed is the story at hand, the laws involved and the economic arguments, both pro and con.

Thoughts?

ETA: I also will say that even if the projections for revenue were off as much as 30%, 100 million dollars in tax revenue, that the state had very little in working for, is damn well a good place to start no?

~Tenth

It's a medication. All I'm saying. S + F

lIKE THE GOVERNMENT IN Canada SELLS FOR MORE THAN STREET PRICES....to sick people......IDIOTS ALL......
They can and will screw everything they do up.....

a reply to: tothetenthpower

Plus, any Coloradan over 21 can grow up to six plants for personal use.

Thats kind of a self defeating loophole, no? Why pay for it (above or below board) when you can grow it?

Six plants, thats a lot of smoke.

Ha, those recreational dispensaries are robbery. Going to pay double to triple black market price.

A Medical one will cut you a "deal" if you make them your caregiver thus they get your plant count.

Always could get that sea of green yourself. Who we kidding, it's all about the 710.

Theres a ton of folks out here trying to make money on the black market, some doing it well, some are hacks.

The real deal is, its legal here and the world has not ended.

money money money

a reply to: tothetenthpower

I am so sick of the anti marijuana movement. Just legalize it already. I get why Big Biz wants it illegal but the morons who follow who have nothing to do with Big Biz that fight the legalization are complete sheep. Rarely do I use the term sheep, but that's what they are.

I think it's hilarious that the Feds have marijuana classified as a schedule 1 drug, the so called most dangerous drug with NO MEDICAL uses but meanwhile back in Washington DC MEDICAL MARIJUANA exists. Further more, this November, the people of DC can vote on making marijuana completely legal for recreational use.

But yet, the Feds keep it illegal and the majority of convicts in prison for drug use are marijuana users.

Our gov't is so corrupt.

originally posted by: intrptr
a reply to: tothetenthpower

Plus, any Coloradan over 21 can grow up to six plants for personal use.

Thats kind of a self defeating loophole, no? Why pay for it (above or below board) when you can grow it?

Six plants, thats a lot of smoke.

Time, effort, knowledge, space, discipline.

a reply to: intrptr

Because, believe or not, some people can't grow a weed. So whether they can't or they just don't want to invest the time is why. Same goes for alcohol. You can make your own but the majority would rather just buy it. It's easier that way and we live in a instant gratification world now.

originally posted by: tothetenthpower

Pot smokers are still buying on the black market: The state thought more people would migrate out of the black market. But only 60% of people who want pot in Colorado this year will buy it through legal channels, according to an estimate from the Marijuana Policy Group.

This part is hilarious.

Only 60%....yes, because garnering 60% market share over a 2 year period is so common place...

Only...lol.

a reply to: peck420

How is it black market still if it's completely legal?

originally posted by: intrptr
Thats kind of a self defeating loophole, no? Why pay for it (above or below board) when you can grow it?

Vegetables have been legal for unlimited growth for a very long time...the vast, vast, vast majority are still purchased.

I would anticipate that the same would hold true for MJ.

Growing is a lot more time and effort than most are willing to put into something that is relatively cheap.

For example (this example is just numbers pulled form thin air to illustrate the point):
I value my time at $20/hr. It takes me 150 hrs to cultivate 1 plant.

Is it going to cost me more than $3,000 to buy the output from said plant?

If the answer is no, they will purchase.

originally posted by: Swills
How is it black market still if it's completely legal?

They are avoiding the legal process' involved. Licensing, inspections, etc, etc.

There is currently black markets for many legal items:

Guns
Cigarettes
Alcohol
etc.

Some times it is generated by price gouging from limited suppliers, sometimes by the price affects of proper procedures, sometimes from high tax rates.

Basically, anytime a product can be brought to market for less than the same product brought to market through all proper process', there will be a black market to some extent or another.

originally posted by: peck420


Growing is a lot more time and effort than most are willing to put into something that is relatively cheap.

For example (this example is just numbers pulled form thin air to illustrate the point):
I value my time at $20/hr. It takes me 150 hrs to cultivate 1 plant.

Is it going to cost me more than $3,000 to buy the output from said plant?

If the answer is no, they will purchase.

Not even 150hrs to cultivate 6 plants. It's a weed...sunlight, soil, water....

a reply to: Swills

Because, believe or not, some people can't grow a weed. So whether they can't or they just don't want to invest the time is why.

Thats why they buy it from their friends, then? Instead of the shops, I mean. I get that part. I didn't want any camera recording me getting herb, legal or not.

Kind of like the alcohol thing. My guess is most people that have addiction problems with anything tend to want to keep that low down, legal or not.

They should be happy there with the 40 % that don't give a crap. They also own cell phones, have credit cards and walk down trails, kicking cans.

a reply to: peck420

That explains it.

But I equate it to buying veggies and fruits from a neighbors lil farm stand. I could go the store or buy locally, and chances are those lil farm stands aren't reporting to the Govt. Good.

a reply to: olaru12

150 hours? The flowering time alone if anywhere between 60ish (being very generous) and 80ish days.

a reply to: Swills

I think they mean the hours you spend actually working on it and preparing.

In these legal states the citizens should take seeds and throw them everywhere. Lawns, vacant lots, everywhere. Food, medicine, safe recreational alternatives.

a reply to: Lysergic

Time, effort, knowledge, space, discipline.

Good light, (sun), good soil prep, and best seeds money can buy, hopefully climatized for several generations to the locality. Start a bunch, grab the six best females and away we go…

A greenhouse would keep out the critters (two and four legged). Besides that they grow themselves. I'd produce twelve pounds of righteous bud from one season.

a reply to: peck420

I value my time at $20/hr. It takes me 150 hrs to cultivate 1 plant.

20 dollars a gram on the "open market" if its good.

2 lbs. times six plants, times 16 ounces per pound, times 28 grams per ounce?

We be off the charts after a couple years…


… and in jail…