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SF suspends cannabis tax to help dispensaries compete with drug dealers

thenationaldesk.com

41–50 of 247 posts

Re: SF suspends cannabis tax to help dispensaries compete with drug dealers

#41

Wait I was told that when it was legalized there would be no more underground drug market. Seems things aren't as simple as they seem on the surface.

It certainly reduces gang violence and fake or tainted drugs.

Re: SF suspends cannabis tax to help dispensaries compete with drug dealers

#42

Wait I was told that when it was legalized there would be no more underground drug market. Seems things aren't as simple as they seem on the surface.

How easy/legal is it to grow your own in CA? If it's very easy, the underground market will probably be entirely homegrown, and still beneficial to the local economy even without tax income. If it's hard or illegal to grow, wholesale importation from cheaper areas will continue funding criminal logistics operations, and most of the revenue will leave the area.

Re: SF suspends cannabis tax to help dispensaries compete with drug dealers

#43
post #24

In most recreational states, cannabis is taxed heavily at every step in the supply chain, so the highest quality still ends up being very expensive -- upward of $400/oz. The black market has the exact same quality at the wholesale price, typically 40-60% less than retail, with the added bonus of not having the government involved. For a daily or heavy smoker, a ~50% discount is a massive amount of money.

50% is worth the diminshed crime, and nobody should consume cannabis daily.

Re: SF suspends cannabis tax to help dispensaries compete with drug dealers

#45

Wait I was told that when it was legalized there would be no more underground drug market. Seems things aren't as simple as they seem on the surface.

It certainly reduces gang violence and fake or tainted drugs.

But I don’t think it really reduces the amount of fake or tainted drugs, at least not for those who really suffered from the prohibition.

The heavy taxation and the strict regulation of the market creates a massive cost overhead. Even the lowest quality of legally sellable weed is so expensive that it’s out of reach for poor consumers. The undergroud market may even be able to offer the same quality product for a fraction of the price, for obvious reasons of course.

So many people, especially those with less financial stability, will still choose the underground market over legal options. Also, I’d assume that since the legalization, the pressure by law enforcement has dropped quite a bit, at least for consumers. This would make the underground an even more compelling choice.

Re: SF suspends cannabis tax to help dispensaries compete with drug dealers

#46
post #24

In most recreational states, cannabis is taxed heavily at every step in the supply chain, so the highest quality still ends up being very expensive -- upward of $400/oz. The black market has the exact same quality at the wholesale price, typically 40-60% less than retail, with the added bonus of not having the government involved. For a daily or heavy smoker, a ~50% discount is a massive amount of money.

Additionally the taxes create operational overhead to stay compliant. Every product follows a chain of custody similar to pharmaceuticals. Even the scales used must be of the same spec used for gold weighing and cost roughly $1,500 each. It's not just the dispensaries but the wholesalers, processors, and cultivators need to buy these scales and register them once a year with the state for $100. Furthermore the batche…

If people can sell pies, vegetables, dairy and sometimes cider at informal farmers markets, cannabis should be the same.

Moldy cannabis is self-apparent in most cases.

Toxic distilled alcohol isn't. Some claim you can use a flame test to detect poisonous liquor.

Re: SF suspends cannabis tax to help dispensaries compete with drug dealers

#47

Earlier quoted context omitted.

Additionally the taxes create operational overhead to stay compliant. Every product follows a chain of custody similar to pharmaceuticals. Even the scales used must be of the same spec used for gold weighing and cost roughly $1,500 each. It's not just the dispensaries but the wholesalers, processors, and cultivators need to buy these scales and register them once a year with the state for $100. Furthermore the batche…

If people can sell pies, vegetables, dairy and sometimes cider at informal farmers markets, cannabis should be the same. Moldy cannabis is self-apparent in most cases. Toxic distilled alcohol isn't. Some claim you can use a flame test to detect poisonous liquor.

Well, a flame test is suitable (at least against liquor that isn't deliberately trying to kill you), but the naked eye isn't sophisticated enough to analyze the spectrum.

Re: SF suspends cannabis tax to help dispensaries compete with drug dealers

#48
post #31

Has the city considered…uh, arresting drug dealers?

I'd like to congratulate drugs for winning the war on drugs. The surrendering party should have unconditionally surrendered, but have chosen to fight it to the grave.

Release all prisoners of war and pay reparations? Or just move onto the next authoritarian power grab like it never happened?

Re: SF suspends cannabis tax to help dispensaries compete with drug dealers

#49

Wait I was told that when it was legalized there would be no more underground drug market. Seems things aren't as simple as they seem on the surface.

It certainly reduces gang violence and fake or tainted drugs.

How common is fake pot, though? I mean, surely young folks try to do stupid things to other young and stupid people (fake and tainted drugs). Occasionally folks don't get the quality they expect. But all this stuff means you lose customers and you continually need new folks to dupe.

"fake or tainted drugs" has always seemed like a bigger problem with different categories of drugs.

Additionally, I'm not convinced it actually reduces gang violence since we still have a thriving black market.

Re: SF suspends cannabis tax to help dispensaries compete with drug dealers

#50
post #24

In most recreational states, cannabis is taxed heavily at every step in the supply chain, so the highest quality still ends up being very expensive -- upward of $400/oz. The black market has the exact same quality at the wholesale price, typically 40-60% less than retail, with the added bonus of not having the government involved. For a daily or heavy smoker, a ~50% discount is a massive amount of money.

50% is worth the diminshed crime, and nobody should consume cannabis daily.

That's, like, just your opinion, man.
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