Lion of Judah

Time.com - Proponents of marijuana legalization have advanced plenty of arguments in support of their drug of choice — that marijuana is less dangerous than legal substances like cigarettes and alcohol; that pot has legitimate medical uses; that the money spent prosecuting marijuana offenses would be better used on more pressing public concerns.

While 13 states permit the limited sale of marijuana for medical use, and polls show a steady increase in the number of Americans who favor legalization, federal law still bans the cultivation, sale, or possession of marijuana. In fact, the feds still classify marijuana as a Schedule I drug, one that has no "currently accepted medical use" in the United States.

But supporters of legalization may have been handed their most convincing argument yet: the bummer economy. Advocates argue that if state or local governments could collect a tax on even a fraction of pot sales, it would help rescue cash-strapped communities. Not surprisingly, the idea is getting traction in California, home to both the nation"s largest supply of domestically grown marijuana (worth a estimated $14 billion a year) and to the country"s biggest state budget deficit (more than $26 billion).

On Monday, Gov. Arnold Schwarzenegger and the California legislative leaders a tentative budget agreement to plug the state's deficit, but it would involve making sweeping cuts in education and health services, as well as taking billions from county governments. Democratic state assemblyman Tom Ammiano has introduced legislation that would let California regulate and tax the sale of marijuana. The state's proposed $50 an ounce pot tax would bring in about $1.3 billion a year in additional revenue. Ammiano's bill was shelved this session but he expects to introduce a revised bill early next year.

If the state legislature doesn"t act, perhaps California voters will. One group is preparing to place a statewide initiative for the November 2010 ballot that would regulate and tax the sale of marijuana for Californians 21 years of age and older. Tellingly, the group spearheading the measure calls itself TaxCannabis2010.org, stressing the revenue advantages of marijuana legalization. The group hopes to collect the required 650,000 voter signatures by January to place the measure on the November 2010 ballot.

"There"s no doubt that the ground is shifting on marijuana," says Ethan Nadelmann, executive director of the Drug Policy Alliance, which promotes alternatives to the war on drugs. "The discussion about regulating and taxing marijuana now has an air of legitimacy to it that it didn"t quite have before. And the economy has given the issue a real turbo charge."

The legalization effort is getting serious consideration from surprising quarters. In May, Gov. Arnold Schwarzenegger publicly called for a large-scale study to determine whether to legalize and tax marijuana.

"I think it"s time for a debate," the governor said at a news conference. "I think we ought to study very carefully what other countries are doing that have legalized marijuana and other drugs."

In California, medical marijuana sales are already taxed, and some communities are looking for ways to get a bigger slice of the pot pie. Residents Oakland are currently voting in a mail-in special election that includes a measure which would make the city the first in the country to establish a new tax rate for medical marijuana businesses. If the measure passes, Oakland marijuana dispensaries, which are now charged at the general tax rate of $1.20 per $1,000 in receipts, would see that rate raised to $18 per $1,000.

A Field Poll conducted in California this spring showed 56% of the state"s registered voters in support of legalizing and taxing marijuana as a way of offsetting some of the budget deficit. Several national polls have shown that more than 45% of American adults are open to legalizing pot, about double the support a decade ago.

Even the most ardent marijuana advocates aren"t expecting nationwide legalization anytime soon. Instead, any action is likely to come on the state and local level. For now, all eyes are on cash-strapped California, where high taxes could take on an entirely new meaning.


Source: Is Marijuana the Answer to California's Budget Woes? - TIME

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claygooding

What ever the going price for street skagg is now,cut in half,might take enough profit out of the green market to curtail the import of Mexican marijuana and move them on to more lucrative fields. Any taxes or fees that keep the price where it is just underwrites the cartels and large growers to continue producing and selling black market,non-taxed marijuana. And they already have clientele and distribution systems in place. The exotic strains will have their own group of customers,much the same as wine and brandy has fans and beer has mobs that drink it. Sorry for using a dangerous drug to compare with harmless marijuana.
And for those expenive strains,the price will again have to be low enough to take the profit out of it,if too high,people will just grow their own or buy it from a dealer. The pricing will always have to be competitive enough to make money for the producers,distributors and sales points,plus whatever tax is put on it by the governments. And yet remain low enough to keep most users just buying it at the store,and not growing their own or buying untaxed marijuana from a dealer.
People are just naturally lazy,so many will buy from the stores rather than gardening their own,but some will garden,just because of the enjoyment of self achievement and the beauty of the plants. Although,if you happen to live in an area where farmers start raiaing hemp,you can forget about outside grown sensemilla,as the air will be full of hemp pollen,and bees and insects will pollenate your plants.or one of your neighbors won't pull his males,and you'll get seeds. I've smoked seeded pot all my life,and it will do the job,but for that extra kick,in the flavor dept and the potency,indoor growing will take on a major part of the exotic strains and people that want to grow their own. It's funny that even in this stressed economy,indoor growing suppliers are still strong in the stock market and are actually hiring people,instead of laying off. Hmmmmm

Tokin' Talker

Answer:
No. If they truly pull in $1.3 billion a year from the legalization, taxation, and regulation, then it simply won't solve all of their $24.3 billion woes. However, when Arnold is proposing to sell San Quentin for $2 billion and build a new prison for the inmates at $1 billion for a one time net gain of $1 billion.... marijuana looks like a much better idea.

You have a one time paycheck of $1 billion dollars in one hand, while losing an historic site, and an annual paycheck of $1.3 billion dollars in the other, while losing nothing... which one would you choose?

TheMeatball

What about if the Governor goes all the way and decides to pardon anyone serving time for marijuana posession alone. How much money would that save the government a year?

What if courts stop hearing marijuana cases and the police stop booking people for possession? How much money would that save the government a year?

Admittedly, it won't solve the problem, but when the problem is of the magnitude that CA's is, you'd be an idiot not to consider all your options. If they can get an extra $1.5 billion from deregulating marijuana, that's actually a pretty signifcant chunk to turn down based on wives tales and paranoia.

IMWylde

You also have to wonder if they have taken into consideration the sheer amount of agri-business that would spring up virtually overnight. from earthworm castings to production seminars, you name it. I agree 1.3 Billion in taxes isnt much against their overall bill but It's a step and it creates jobs.

I think its unwise for the federal government at this juncture to do anything that prohibits individual states from making money.

Dr Trevis

It's not the sole answer, but it would help a hell of a lot.

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