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People will still flock to the legal weed because, well, it is legal. The thought of not getting in trouble for buying it or using it will help drive the market. It has helped here in Colorado. Also the legal weed shops sell multiple strains which customers will swoon over. There will always be a black market as long as it is illegal on the federal level. Once that changes the black market most likely will disappear just like alcohol did a long time ago.
Having a variety always helps. That's what is learned from a free market. Just like how it's about the cost and quality of the product to the consumer. Product A is 200 an ounce while product B is 250 because of taxes.
The black market will always exist if there is money to be made and there will be as long as government regulations and taxes adds to the production cost of legal weed. Drug related violence as far as selling will go down. The big profit wont be such that gangs will risk life and limb to sell. So that's a plus.
Prohibition was over turned a long time ago, yet moonshiners stayed around. People go across state lines to save on taxes on alcohol and tobacco.
Why would you say that? The only one at risk is the person selling it. NYC has what is probably the most expensive cigarettes in the country, something like $15 pack. As the tax has increased the revenue has declined and that ins;t becsue people stopped smoking. They either buying them somewhere else or on the black market
For example you can buy a bag of tobacco in PA for about $20 which is enough tobacco for about two cartons. Tubes for two cartons are going to cost you about $6.... total investment is $26. Using a basic machine that might cost you $30 once you could make two cartons in an hour and probably a lot more if you did it a lot and/or modified the machine. Even if you sold a pack of cigarettes for $6 you're making $100 an hour.
Peace of mind.
There is a black market for cigarettes? I had no idea. You have to desperate to smoke if you are going there.
Having a variety always helps. That's what is learned from a free market. Just like how it's about the cost and quality of the product to the consumer. Product A is 200 an ounce while product B is 250 because of taxes.
The black market will always exist if there is money to be made and there will be as long as government regulations and taxes adds to the production cost of legal weed. Drug related violence as far as selling will go down. The big profit wont be such that gangs will risk life and limb to sell. So that's a plus.
Prohibition was over turned a long time ago, yet moonshiners stayed around. People go across state lines to save on taxes on alcohol and tobacco.
I completely agree with your second paragraph. The violence related to black market sales will all but disappear, that is if it gets legalized on the federal level.
Any product with ridiculously high taxes will help develop and sustain a black market. Weed is no different. But greedy politicians refuse to learn this basic economic principal.
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“High effective tax rates on California cannabis may complicate the state's efforts to establish legal markets,†said analysts Stephen Walsh and Karen Ribble in a Fitch Ratings report on California's marijuana taxes, according to CNN Money.
In other words, the state's onerous taxes on the legal marijuana industry could have the unintended side effect of protecting the black market at the expense law-abiding vendors.
Hypothetically, taxes on marijuana could reach as much as 45 percent, and taxes that high give the already established black market an edge, slowing the movement of consumers away from the illicit market to the legal market.
“Registering with the state and becoming compliant will cost about $100,000,â€
Why would you say that? The only one at risk is the person selling it. NYC has what is probably the most expensive cigarettes in the country, something like $15 pack. As the tax has increased the revenue has declined and that ins;t becsue people stopped smoking. They either buying them somewhere else or on the black market
For example you can buy a bag of tobacco in PA for about $20 which is enough tobacco for about two cartons. Tubes for two cartons are going to cost you about $6.... total investment is $26. Using a basic machine that might cost you $30 once you could make two cartons in an hour and probably a lot more if you did it a lot and/or modified the machine. Even if you sold a pack of cigarettes for $6 you're making $100 an hour.
Black market. People do runs to Virginia, load up their vehicles and sell cartons out of the back of their cars.
I tried distilling my own vodka a long time ago to save the costs of buying the stuff. The rotgut that came off my still was ok as shellac thinner but not at all drinkable. Cheap store bought booze was far better. I would expect to have the same success with home grown weed.
I am all in favor of selling various grades of weed, including the non hallucinogenic medical variety, in the same stores as we sell booze. Prices would be reasonable, quality assured and access controlled to "adults". I feel pretty much the same about most of the currently illegal drugs.
I tried distilling my own vodka a long time ago to save the costs of buying the stuff. The rotgut that came off my still was ok as shellac thinner but not at all drinkable. Cheap store bought booze was far better. I would expect to have the same success with home grown weed.
Nah, disagree, distilling and brewing are much more challenging.
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