California is proving to be the state that pushes the bounds of communistic control over its economy. Marijuana growth in California is being driven back by the state government’s control over the industry. That’s not the capitalist system created in the United States.
Legalizing Marijuana was supposed to stop two problems. Number one, it was supposed to legalize the plant and lessen the jail and prison population, which hasn’t been a significant advantage of the legalization. Number 2 was considered to create an economy around Marijuana for taxes and business revenue. Many anticipated the second factor and capitalized on it or, in California, “Socialized” on it.
American Thinker reported that California has “a cultivation tax on growers as well as a 15% excise tax rate on consumers for any legal pot purchases. California also controls the allowed mark-up rate, which is 80%.”
A letter to California Governor Gavin Newsom said, “The opportunity to create a robust market has been squandered as a result of excessive taxation. Sixty-five percent of cannabis in California is consumed in the illicit market and is untested and unsafe.”
That’s number 3 of what Marijuana legalization was supposed to solve. It was supposed to create a retail space for consumers to safely get their Marijuana without having to guess if it was laced with other drugs or the hazardous nature of a drug deal.
Erin Mellon, a Newsom spokesperson, said, “It is apparent that the current tax structure is posing unforeseen but significant obstacles. Any tax-reform attempt in this area will necessitate action by two-thirds of the Legislature, and the Governor is willing to collaborate with them to find a solution.”
The solution seems to be less government involvement in mark-ups and taxes. Like anything else, taxes can be imposed by the government. Still, it’s unreasonable to expect taxes to control the industry and push consumers and business owners to the end of illegal deals and illegal drug sales, which would obstruct the problem that was solved by legalizing Marijuana in the first place.
The last and most notable statement in the letter reads, “The solution to these problems, as well as the prospect of rescuing our sector, is in your hands.”
The California state government needs to understand that the rest of the country views them as idiots. They are over-taxation, and ridiculous mandates and control aren’t helping their citizens. If the government can admit that there’s a strain on the public because of the COVID-19 pandemic, it can acknowledge that they should help.