Yay!! It’s Friday!! And THIS is the Friday edition of my blog!! Actually, I completely forgot it WAS Friday. My man works M-W, 12 hour night shifts so when he gets off work at 6am on Wednesday, I basically forget everything until the next Sunday afternoon when he leaves at 4pm. Oh well…
Taxation of Marijuana
Today I thought we’d talk about taxation. They say only two things in life are certain…Death and Taxes. Like it or not, if Marijuana is legalized, there will be taxes. Oh yeah, you can live off grid and grow your own and maybe, just maybe, you can avoid taxes. But this blog is more for people who enjoy indoor plumbing. And with the plumbing, comes taxes.
Bringing the White House into it, this might break up some of the tension between Obama and John Boehner. With Marijuana being legal for recreational use in both Washington State and Colorado, taxation is only logical. And analysts at the Tax Policy Center are atwitter. So the Center took a look at two studies. One found that state and federal taxes could bring in about $9 billion a year and save about equal to that in law enforcement costs. (The study used assumptions on supply, demand, and price. It used the same formula used in the taxation of alcohol and tobacco. Also included in the $9 billion figure was income taxes for those making money in the trade.) In another study, using estimates from California, legalization could add $1.4 billion to the state’s economy, but doubted if all that money would materialize.
Ok, $9 billion isn’t very much considering that one percent of the country’s gross national product is $150 billion. And the fact that one year’s deficit now equals $1 trillion, plus Mr. Obama and Mr. Boehner playing footsy to the tune of $600 billion in tax increases and spending cuts.
Is all this thinking a bit fanciful at this juncture? Yep, probably. Federal prosectutors won’t be making it any easier for these states to tax Marijuana. The fact is, the White House and the Justice Department have been considering whether to pursue legal action against Colorado and Washington State to block their Marijuana laws.
So there you have it. With legalization, probably will come taxation. Can’t fight City Hall. So is it worthwhile to legalize it (tax wise)? I think so.