Legalization of Marijuana

High Taxes on Cannabis Sales Could Drive Users Underground

Slapping high taxes on sales of marijuana in California, where the recreational use of cannabis became legal at the beginning of this year, will play into the hands of the state’s black market. This fear has been voiced by both political analysts and concerned cannabis-related business owners who point out that the hefty tax on weed will drive users underground. Social media is being inundated with gripes from “weedsters” who are posting copies of their tax receipts to prove their point. Hash-tags like “California is screwing us” appear alongside purchase slips. One of these was for a purchase amounting to $450 that was taxed a further $137.25! It was for the purchase of one ounce of high-end weed from a store in LA. Tax break-down on a one-ounce weed purchase Excise Tax of $67.50 which, ironically, will be used for drug prevention programs! The money will also fund other services, …

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