California’s Increasing Weed Taxes are Fueling Crime, Destroying Environment, and Killing Jobs
California — It’s been two years since California began licensing businesses to sell legal marijuana. Unfortunately, however, the legal scene is far outmatched by the black market and the state government is 100% responsible. Instead of reacting to the negative effects of state involvement in the cannabis market, the government of California has doubled down and will vastly increase the burden on legal operations which is certain to create more crime, damage the environment further, and stoke unemployment and business closures.
And the state couldn’t care less.
At the end of 2019, the Cannabis Advisory Committee warned Gov. Gavin Newsom and California legislators that high taxes, overly burdensome regulations and local control issues posed debilitating obstacles to the legal marijuana market. In response, California officials enacted a new a law on New Year’s day to increase these taxes and overly burdensome regulations.
“Essentially, the state is raising our taxes $3 on every $100,” said Eric Miramon, co-owner of All About Wellness in Sacramento.
Miramon told KCRA his pot shop pays a whopping $120,000 a month in combined state and city taxes — and those fees are going up.
Cannabis wholesalers were already paying outrageous excise fees of 60%. But this year, those fees went up to 80%. Cultivation fees are also going through the roof. The effects of extorting the legal cannabis industry for more and more money are devastating both for crime and the environment.
“Increasing the taxes over and over a little bit every month, this is pushing people further and further into the black market,” Miramon said.
The effects of officials steadily stealing more and more from the market via higher taxes and more regulations have been staggering. In fact, despite bringing in $3.1 billion in licensed pot sales — becoming the largest market in the world in 2019 — it is estimated that over 80% of cannabis sales still take place in the black market.
That is nearly $9 billion going to people who are willing to break the law. While many of the folks on the black market are good people who simply wish to conduct business outside the burdensome economy taxed into oblivion by the state, others are ruthless killers and members of the cartel.
El Dorado County sheriff’s Deputy Brian Ishmael was one of the victims of this policy. A private resident who was allowing the cartel to illegally grow weed on his property called police in October after the cartel refused to pay him all his money. When Ishmael responded to the call, cartel members harvesting the last of their weed, shot and killed him.
Ishmael is one of many victims in this drug war that’s been created and maintained by prohibition and government regulation.
https://thefreethoughtproject.com/california-cannabis-industry-danger-statists/