Quote:
Originally Posted by TheWolf
I don't understand the logic of this "tax revenue" stream..
It's like offshore jobs. Some people do grow in the US although illegal etc but most are farm workers in mexico etc. Working for peanuts. Cost to grow, very minimal. Cost to transport expensive. Once "legalized" in california, expect to see these costs go down leading to cheap "street" weed and "expensive" legal weed.
Now take the california new legal grower. Ok once legislation gets into this, the money will be extracted in bucket trucks. The grower will need a license, inspections, tax forms, impact fees, fines, etc. The dispenser will definitely need some kind of license, inspection, and monumental fine for selling underage. Just like how cops send kids into bars with fake id's trying to buy booze. they'll send kids into dispensers with fake perscriptions, fake id's etc. The fines will be huge. According to the article the license for a dispenser will be about 30k a year. That's about what a bar pays for it's booze license.
Once it's legal then they'll need a standardized container with a tax stamp on it. This will be the goto for money just like packs of cigarettes are. So back to our economics lesson. How is a legal grower who pays workers comp, and atleast cali minimum wage, property taxes, state income tax, federal income tax, impact fees, manage all of these forms, with penalties etc. Navigate all the legal issues. This all takes a substantial investment with significant overhead. This guy is going to compete with weed grown in mexico and smuggled in???
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the mexican cartels will and always have had an inferior product mainly from the drying and smuggling methods used. this will not change. everyone knows indoor grown is superior medicine since it doesent have bugs crawling on it shitting etc. lots of people will always want the best product and that will mean that there will always be a huge demand for premium specialty varieties, just like the wine industry, and people will pay a premium for it.
this will remove the mexican weed from the cali market because given the option noone will buy brown shitty mexican weed when they can have properly grown and dryed cali weed; even if big tobacco is the ones doing the growing. if the industry cant provide the good product a network of professional growers such as seen in n.cali will.
people will always pay a premium for the good indoor weed even if the state is overrun with outdoor. therefore coffee shop type dispensarys will be in demand like in amsterdam.