Tweet of the day …

This is the primary reason why legalizing pot will not eliminate illegal drugs and drug cartels.

Los Angeles Times

“The cannabis industry is being choked by California’s penchant for over-regulation,” said Dale Gieringer, director of California NORML, a pro-legalization group. “It’s impossible to solve all of the problems without a drastic rewrite of the law, which is not in the cards for the foreseeable future.”

After voters legalized marijuana two years ago under Proposition 64, state officials estimated in there would be as many as 6,000 cannabis shops licensed in the first few years. But the state Bureau of Cannabis Control has issued just 547 temporary and annual licenses to marijuana retail stores and dispensaries. Some 1,790 stores and dispensaries were paying taxes on medicinal pot sales before licenses were required starting Jan. 1.

State officials also predicted that legal cannabis would eventually bring in up to $1 billion in revenue a year. But with many cities banning pot sales, tax revenue is falling far short of estimates. Based on taxes collected since Jan. 1, the state is expected to bring in $471 million in revenue this fiscal year — much less than the $630 million projected in Gov. Jerry Brown’s budget…

Javier Montes, owner of Wilmington pot store Delta-9 THC, says he is struggling to compete with a large illicit market unburdened by the taxes he pays as a licensed business.

“Because we are up against high taxes and the proliferation of illegal shops, it is difficult right now,” Montes said. “We expected lines out of our doors, but unfortunately the underground market was already conducting commercial cannabis activity and are continuing to do so.”

Montes, who received his city and state licenses in January, says his business faces a 15% state excise tax, a 10% recreational marijuana tax by the city of Los Angeles and 9.5% in sales tax by the county and state — a markup of more than 34%.

He says there isn’t enough enforcement against illegal operators, and the hard times have caused him to cut the number of employees at his shop in half this year from 24 to 12…

This entry was posted in Current Events, Government, The Culture, Uncategorized. Bookmark the permalink.

3 Responses to Tweet of the day …

  1. czarowniczy says:

    Yup, those be good reasons, but even if those thousands of shops had materialized I don’t believe illegal drugs would have disappeared. Legalizing anything adds levels of expense and bureaucracy between grower and consumer that aren’t there in the illegal business, sort of like how Amazon is killing brick and mortar stores.

    If I’m a cartel guy I don’t need a physical store, I sell out of my or some abandoned house or even the trunk of my car. No haggling in court over a bad deal – someone ends up in a shallow grave in the desert, just as dealing with competition. I dun need no steenkin’ MBA, just a bunch of dweebs that will risk jail for selling my product – and without benefits.

    Most of the folks with disposable income and a fear of being arrested will buy at the shops but if some stoner with his fast food or aluminum can income’s looking for a downtime high, he’s shopping price and the street’s his Amazon.

    Liked by 2 people

    • stella says:

      I totally agree, and have been arguing this for a while now. The illegal sales will not end. In fact, I think legalization will make it much easier for illegal drug sales.

      Liked by 2 people

      • czarowniczy says:

        Sorta how legalizing alcohol killed bootlegging. All it did was put the small-timers out of business, the entrepreneurs who knew how to runs a still as a business are still cranking out.

        Liked by 1 person

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