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Economy
Is Marijuana the Answer to California's Budget Woes?
2009-07-22
Given a choice between legalizing alcohol or legalizing pot, I'd take the latter. It seems to me that 99% of crimes associated with pot are associated with its growth and distribution, not violence resulting from its use. Ever heard of an angry stoner?
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.
Posted by:gorb

#16  and it might increase munchie food sales

I've got it! Legalize marijuana and tax the hell out of munchies!
Posted by: gorb   2009-07-22 23:14  

#15  Seems to me that a stoned legislature ain't going to be passing to many spending/taxing bills. Looks like a good deal.
Posted by: Omiting the Younger9947   2009-07-22 19:59  

#14  Ummm, wuth every lawman against them, I'd see a Paranoid user as entirely sane, he IS persecuted.

Boils down to the old joke, "Paranoids have eal enemies too".
Posted by: Redneck Jim   2009-07-22 19:58  

#13  Pot leads to Pyscho problems, long time users become parinoid schzephrenic (sp). Check all the medical studies, they all reach the same conclusion. Yes my friends reefer madness is quite real. That said I see no reason why it should not comfort a terminally ill patient. IMHO there are way too many people with "back" problems that are smoking pot and living on the government dime. True I have not seen a angry stoner, but I have met many that are paranoid.
Posted by: Cyber Sarge   2009-07-22 19:51  

#12  Marijuana alone isn't the answer. There's also LSD, cocaine, quaaludes, heroin, morphine, meth, mescaline...
Posted by: Zhang Fei   2009-07-22 19:38  

#11  Personally, I believe the cost of keeping pot illegal far out ways the cost of legalizing it. The catch is, Marijuana is a weed. You can grow it anywhere and easily. Unless the government can figure out a way to keep people from growing, they will collect very little in the way of taxes.

Some people will buy it from legal dealers, but most will continue to buy it from the guys that they know. And it will be cheaper. And no taxes will be collected.
Posted by: DarthVader   2009-07-22 19:20  

#10  Coca-Cola products and Tostito's Chips, you're going down!! LOL!
Posted by: GirlThursday   2009-07-22 18:36  

#9  then they'll ban munchies
Posted by: Frank G   2009-07-22 18:26  

#8  I could care less if they do this, and it might increase munchie food sales.
Posted by: GirlThursday   2009-07-22 18:21  

#7  I don't think legalizing Grass will do anything at all, people will simply grow their own, free of tax, a sorta modern moonshiner.
Posted by: Redneck Jim   2009-07-22 17:28  

#6  Legalization and the budget have nothing to do with each other. Solving the budget problem means cutting costs -- starting with the unions.

That said, legalization is a great idea. The way to get less of something is not to criminalize it. That just raises the cost. No, the way to kill something off for good is by taxing it to death.
Posted by: Iblis   2009-07-22 16:22  

#5  There is a fungus to kill cocaine plantations - the Congress won't let it be used by the DEA because fungus is ickky... (or maybe the congress-critters use?)
Posted by: 3dc   2009-07-22 16:18  

#4  Cops I know prefer arresting potheads over drunks but I think it is dangerous to your health as much as legal alcohol and tobacco. Making them illegal or denying them health care won't make a politician very popular so not likely to happen. Taxing it and allowing it to be grown as a domestic cash crop would allow us to clamp down on all the borders and coasts to keep the more dangerous drugs and other illicit cargo out, including illegal aliens. It would also free up precious prison space, cutting the incarceration cost of $78 pp/day. The tough problem is stopping the opium and cocaine--maybe we should convince the Taliban to grow weed instead of opium? A toke might even pacify them a bit.
Posted by: Lumpy Elmoluck5091   2009-07-22 15:01  

#3  A. No. Getting rid of the Democrat - Union chokehold that is killing CA is.

Sweet irony though, their incompetence has now required offshore drilling. That's big ol' can o' worms the Dems had to swallow. If we can drill of Santa Barbara - why not anywhere?
Posted by: Rex Mundi   2009-07-22 14:31  

#2  I don't know if legalizing marijuana is the answer to California's budget woes. Most studies say it would generate up to $1.5-$2 billion/year in added tax revenue and that's not much more than a drop in their bucket of debt right now (though I imagine every bit helps). That said, I support the legalization of marijuana and I believe it should be regulated no differently than alcohol. Compared to marijuana, I believe alcohol causes more health problems as well as more alcohol-related injuries and fatalities.

Of course there is the law of unintended consequences, which trumps all other laws. IMO, weighing the pros and cons, costs and benefits here, I think we would be better off if we took a regulatory approach with marijuana that mimics that of alcohol.

Let's be honest here, buying marijuana these days is not much more difficult than buying alcohol, it just may take a little more time in finding a supplier but once you score a "hook up", it's as easy as dialing 911. And in the case of underage users, it's often much easier to acquire than alcohol.

I'm just saying, is all.
Posted by: eltoroverde   2009-07-22 13:28  

#1  I'm against legalizing stuff like this, but if you want to, fine. Here's how it should work though....


1. Caught driving under the influence of any intoxicant - 1st offense - Perm. loss of Driver's license - 2nd offense - Involuntary Organ Donor/Death

2. Committing ANY such as robbery, etc under the influence of an intoxicant - First offense - Death.

3. Any cancer or illness you get that is tied to taking an intoxicant of any kind - No suing anyone claiming it's anyone's fault but your own.

Whatever is legal, make people take FULL AND TOTAL responsibility for.


Posted by: Silentbrick   2009-07-22 12:23  

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