Comments on: Legalizing Marijuana Could Generate Over Half a Billion in Taxes for Washington State http://justsaynow.firedoglake.com/2012/03/21/legalizing-marijuana-could-generate-over-half-a-billion-in-taxes-for-washington-state/ Legalize marijuana Tue, 21 May 2013 08:08:40 -0500 hourly 1 http://wordpress.org/?v=3.4.2 By: Imhotep http://justsaynow.firedoglake.com/2012/03/21/legalizing-marijuana-could-generate-over-half-a-billion-in-taxes-for-washington-state/#comment-5883 Imhotep Thu, 22 Mar 2012 02:17:20 +0000 http://justsaynow.firedoglake.com/?p=2149#comment-5883 There's an estimated $2Billion short-fall in WA State budget, and, of course, services to the neediest are on the chopping block. There is a refusal to consider reversing, or even looking at, the million$ in tax breaks given to individuals and businesses. There is no income tax, just reliance on the Revenue Act of 1935, which stipulates for property and sales taxes. There's also a Business and Occupation (B&O) tax. There’s an estimated $2Billion short-fall in WA State budget, and, of course, services to the neediest are on the chopping block.
There is a refusal to consider reversing, or even looking at, the million$ in tax breaks given to individuals and businesses.
There is no income tax, just reliance on the Revenue Act of 1935, which stipulates for property and sales taxes.
There’s also a Business and Occupation (B&O) tax.

]]> By: pubchoice http://justsaynow.firedoglake.com/2012/03/21/legalizing-marijuana-could-generate-over-half-a-billion-in-taxes-for-washington-state/#comment-5882 pubchoice Thu, 22 Mar 2012 01:39:32 +0000 http://justsaynow.firedoglake.com/?p=2149#comment-5882 Where are there legal markets for weed? As far as I know California or the Netherlands is as close as it gets. And in both a fully open commercial grow will send you to prison. If Washington passed this bill and congress passed a bill repealing the federal prohibition the wholesale per gram cost would have to be well under a dollar. The biggest benefit of legalization is ending the costs of prohibition. Since a great deal of those costs are priced into weed, legalization would drastically lower the price, which is good! (right now in California wholesale is somewhere around 3 and 6 a gram) but this does mean that the tax revenues are not going to be 25 percent of anything approaching current level of prices. The state is estimating that producers are going to sell weed at 3 a gram, and then after a bunch of state-mandated and useless mediators, consumers are going to spend 16 a gram in the store. Seems unlikely to me. Because of arbitrage, 'gray' market prices will be much lower than 16. After the novelty of legality wears off I'm pretty sure many if not most will take advantage of that. I think the writers of the initiative have put themselves on the wrong side of the laffer curve. Where are there legal markets for weed? As far as I know California or the Netherlands is as close as it gets. And in both a fully open commercial grow will send you to prison. If Washington passed this bill and congress passed a bill repealing the federal prohibition the wholesale per gram cost would have to be well under a dollar.

The biggest benefit of legalization is ending the costs of prohibition. Since a great deal of those costs are priced into weed, legalization would drastically lower the price, which is good! (right now in California wholesale is somewhere around 3 and 6 a gram) but this does mean that the tax revenues are not going to be 25 percent of anything approaching current level of prices. The state is estimating that producers are going to sell weed at 3 a gram, and then after a bunch of state-mandated and useless mediators, consumers are going to spend 16 a gram in the store. Seems unlikely to me. Because of arbitrage, ‘gray’ market prices will be much lower than 16. After the novelty of legality wears off I’m pretty sure many if not most will take advantage of that. I think the writers of the initiative have put themselves on the wrong side of the laffer curve.

]]> By: zot23 http://justsaynow.firedoglake.com/2012/03/21/legalizing-marijuana-could-generate-over-half-a-billion-in-taxes-for-washington-state/#comment-5881 zot23 Thu, 22 Mar 2012 00:23:32 +0000 http://justsaynow.firedoglake.com/?p=2149#comment-5881 It saves even more when you factor in: no money spent for expensive court trials, jail time, appeals, housing MJ convicts, probation, etc. Probably bumps up to a Billion once all the factors are considered. It saves even more when you factor in: no money spent for expensive court trials, jail time, appeals, housing MJ convicts, probation, etc. Probably bumps up to a Billion once all the factors are considered.

]]> By: sixgill http://justsaynow.firedoglake.com/2012/03/21/legalizing-marijuana-could-generate-over-half-a-billion-in-taxes-for-washington-state/#comment-5880 sixgill Wed, 21 Mar 2012 22:00:12 +0000 http://justsaynow.firedoglake.com/?p=2149#comment-5880 A half-billion! That could help pay for part of the Christine Gregoire Alaskan Way Viaduct Tunnel Replacement Boondoggle. A half-billion!

That could help pay for part of the Christine Gregoire Alaskan Way Viaduct Tunnel Replacement Boondoggle.

]]> By: wynota skunk http://justsaynow.firedoglake.com/2012/03/21/legalizing-marijuana-could-generate-over-half-a-billion-in-taxes-for-washington-state/#comment-5879 wynota skunk Wed, 21 Mar 2012 20:48:16 +0000 http://justsaynow.firedoglake.com/?p=2149#comment-5879 At the high end 1/8 of an ounce is $45-55 in legal markets. Wholesale is about $200-230 an ounce for a quality product in legal markets. The best thing in legal markets is the diversity of the product which can be utilized to treat different medical conditions. And offer people a choice to control, alleviate and even heal themselves of chronic pain, etc. Just as in a wonderful romance; over half the magic is in the mystery. Too, both also have healing powers not always quantifiable but certainly obvious to even the most objective and callous observer. At the high end 1/8 of an ounce is $45-55 in legal markets. Wholesale is about $200-230 an ounce for a quality product in legal markets. The best thing in legal markets is the diversity of the product which can be utilized to treat different medical conditions. And offer people a choice to control, alleviate and even heal themselves of chronic pain, etc. Just as in a wonderful romance; over half the magic is in the mystery. Too, both also have healing powers not always quantifiable but certainly obvious to even the most objective and callous observer.

]]> By: Phylter http://justsaynow.firedoglake.com/2012/03/21/legalizing-marijuana-could-generate-over-half-a-billion-in-taxes-for-washington-state/#comment-5878 Phylter Wed, 21 Mar 2012 20:40:56 +0000 http://justsaynow.firedoglake.com/?p=2149#comment-5878 Think of the jobs it will create! Growers, pickers, farm implement sales, more IRS to collect the taxes, more Feds to bust the state! Think of the jobs it will create! Growers, pickers, farm implement sales, more IRS to collect the taxes, more Feds to bust the state!

]]> By: ThingsComeUndone http://justsaynow.firedoglake.com/2012/03/21/legalizing-marijuana-could-generate-over-half-a-billion-in-taxes-for-washington-state/#comment-5877 ThingsComeUndone Wed, 21 Mar 2012 20:33:44 +0000 http://justsaynow.firedoglake.com/?p=2149#comment-5877 Can we get numbers for that savings:) Can we get numbers for that savings:)

]]> By: ThingsComeUndone http://justsaynow.firedoglake.com/2012/03/21/legalizing-marijuana-could-generate-over-half-a-billion-in-taxes-for-washington-state/#comment-5876 ThingsComeUndone Wed, 21 Mar 2012 20:33:07 +0000 http://justsaynow.firedoglake.com/?p=2149#comment-5876 I think the Feds will cut our SS and Medicare again before that happens. I think the Feds will cut our SS and Medicare again before that happens.

]]> By: tammanytiger http://justsaynow.firedoglake.com/2012/03/21/legalizing-marijuana-could-generate-over-half-a-billion-in-taxes-for-washington-state/#comment-5875 tammanytiger Wed, 21 Mar 2012 20:32:10 +0000 http://justsaynow.firedoglake.com/?p=2149#comment-5875 Washington's budget will get another boost from legalization: spending on police, courts, and corrections should decline. Police in this country arrest more than 800,000 people a year for marijuana-related offenses, the vast majority of them for simple possession. Washington’s budget will get another boost from legalization: spending on police, courts, and corrections should decline. Police in this country arrest more than 800,000 people a year for marijuana-related offenses, the vast majority of them for simple possession.

]]> By: dogjudge http://justsaynow.firedoglake.com/2012/03/21/legalizing-marijuana-could-generate-over-half-a-billion-in-taxes-for-washington-state/#comment-5874 dogjudge Wed, 21 Mar 2012 20:30:36 +0000 http://justsaynow.firedoglake.com/?p=2149#comment-5874 We will KNOW that this will happen if the federal gov't comes in and says that they want to tax this also. We will KNOW that this will happen if the federal gov’t comes in and says that they want to tax this also.

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