State officials here anticipate that marijuana sales will generate some $67 million in annual tax revenue.
Read more at http://globaleconomicanalysis.blogspot.com/#KK3SHYiSz9D0w4y7.99
One great delusion in the legalizing of marijuana is the state will collect more taxes. Nonsense. The illegal dope trade is already taxed at the maximum. This is how it works:
A drug dealer is bringing in $50,000 a month in cash. He cannot store it up for fear of being robbed, he cannot bank it for fear of questions as to source. He cannot use his money.
Therefore he opens a pizzeria or some such, any cash biz will do. Heck, a laundromat or a parking lot would work. He has some $5000 a month in sales. He declares $55,000 a month, 50k is the dope money laundered as pizza sales, plus the legitimate $5000.
He pays taxes on the $55,000 at 30%, so he gives the tax man $22,000 in taxes, and so he has $33,000 free and clear, to spend as he wants, all nice and legal. Paying taxes is just a cost of business. Also, the more he pays out in bribes, etc, the less he pays in taxes, so corruption is built into this system.
(As an aside, there are many people who only see the pizzeria and the owners income and say "Gee, I will open one too!" not understanding the dope dealing dimension.)
Two problems: either the underground dope will go legit as in Colorado and Washington netting no more income, or the legit biz taxes are so high the underground continues, like illegal cigarette sales. Probably a combo of both. Legalizing dope will not increase revenues. The State is hooked on dope taxes already.
And as an aside to Mish's article on the topic, which I highly recommend for an aspect of how the world works, he quotes:
Afghanistan, long the world’s main heroin supplier, has seen its total area of poppy seed plantations explode to 516,000 acres - a 36 percent increase from 2012, according to the report, released on Wednesday.
Read more at http://globaleconomicanalysis.blogspot.com/#KK3SHYiSz9D0w4y7.99
Again, not true. Afghans produce opium, a lovely natural drug that starts and ends light and is a cheap and plentiful palliative, traded worldwide as medicine for 3500 years. Heroin is a pointless redesign of opium of German origin a century or so ago. Don't blame the Afghans for heroin, and they should be praised for growing a crop of such critical need. Afghans produce a good thing, the middlemen turn it into something evil.
Feel free to forward this by email to three of your friends.
Read more at http://globaleconomicanalysis.blogspot.com/#KK3SHYiSz9D0w4y7.99
One great delusion in the legalizing of marijuana is the state will collect more taxes. Nonsense. The illegal dope trade is already taxed at the maximum. This is how it works:
A drug dealer is bringing in $50,000 a month in cash. He cannot store it up for fear of being robbed, he cannot bank it for fear of questions as to source. He cannot use his money.
Therefore he opens a pizzeria or some such, any cash biz will do. Heck, a laundromat or a parking lot would work. He has some $5000 a month in sales. He declares $55,000 a month, 50k is the dope money laundered as pizza sales, plus the legitimate $5000.
He pays taxes on the $55,000 at 30%, so he gives the tax man $22,000 in taxes, and so he has $33,000 free and clear, to spend as he wants, all nice and legal. Paying taxes is just a cost of business. Also, the more he pays out in bribes, etc, the less he pays in taxes, so corruption is built into this system.
(As an aside, there are many people who only see the pizzeria and the owners income and say "Gee, I will open one too!" not understanding the dope dealing dimension.)
Two problems: either the underground dope will go legit as in Colorado and Washington netting no more income, or the legit biz taxes are so high the underground continues, like illegal cigarette sales. Probably a combo of both. Legalizing dope will not increase revenues. The State is hooked on dope taxes already.
And as an aside to Mish's article on the topic, which I highly recommend for an aspect of how the world works, he quotes:
Afghanistan, long the world’s main heroin supplier, has seen its total area of poppy seed plantations explode to 516,000 acres - a 36 percent increase from 2012, according to the report, released on Wednesday.
Read more at http://globaleconomicanalysis.blogspot.com/#KK3SHYiSz9D0w4y7.99
Again, not true. Afghans produce opium, a lovely natural drug that starts and ends light and is a cheap and plentiful palliative, traded worldwide as medicine for 3500 years. Heroin is a pointless redesign of opium of German origin a century or so ago. Don't blame the Afghans for heroin, and they should be praised for growing a crop of such critical need. Afghans produce a good thing, the middlemen turn it into something evil.
Feel free to forward this by email to three of your friends.
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