California lawmakers propose cannabis tax cuts to curb the state’s black market

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In an effort to jump-start California’s sluggish legal marijuana marketplace, a group of Democratic state lawmakers proposed a bill that would for the next three years eliminate the state’s $148-per-pound cultivation tax on farmers and reduce the state’s 15% excise tax on retail sales to 11%.



The bill is designed to combat the state’s entrenched black market and provide a lifeline to legal marijuana businesses that are struggling with state and local taxes and time-consuming and costly regulations, Assemblyman Rob Bonta of Oakland, state Treasurer Fiona Ma and three other Assembly members said at a news conference.

A similar bill failed to clear the Democratic-controlled Assembly last year.

– Associated Press


https://mjbizdaily.com/california-l...bis-tax-cuts-to-curb-the-states-black-market/
 
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Fun. They would never propose the same thing to reduce cigarette or alcohol taxes. Neither will NY even though their cigarette tax feeds $Millions into organized cigarette smuggling operations.
 
Yeah but this reminds me of the promise of the education lottery helping.
I disagree with every argument I heard from the anti lottery crowd, but the way it was implemented was political diarrhea. Don’t get me started on the educational part.
 
Do you really believe this?

Seems to me it only thrives when there is a large monetary gap between legal and illegal due to taxation or when the product is illegal entirely. Otherwise the profit margin is much smaller and the resulting black market is smaller because it's less incentivized.

There will always be a black market. The promise of high tax revenue for allowing people to have recreational weed was only an illusion.
 
From another comment. The non criminalized amount would be about one good plant worth. I could see more people growing small amounts for personal use and avoiding the need for a black market, cartel driven, distribution network.
 
From another comment. The non criminalized amount would be about one good plant worth. I could see more people growing small amounts for personal use and avoiding the need for a black market, cartel driven, distribution network.
bingo. This is where it should be going towards
 
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