Rising Marijuana Taxes in California Is a Cause for Worry

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rising marijuana tax in california

When Marijuana was legalized a lot of people were ecstatic about it, but none of them foresaw the barrage of taxes that legalization would entail. The prices of marijuana are going to jump around 70% thanks to the new taxes.

Right now, a small bag of medical grade Marijuana costs about $35, but after the taxes come into effect, the same bag will cost around $60. The government is eager to take advantage of the taxes that legalization is likely to bring in.

However, a lot of pot growers and sellers operating in the legal market are worried that the excessive taxing will only push buyers towards the illegal black market for Marijuana. They are urging the government to crack down on all such illegal operations.

From January of 2018, there will be a levy on purchases and local governments are free to add more taxes on sales and growth as well. So, the prices are quite confusing at the moment and differ from city to city. It is very unlikely that all the cities will be ready to issue business licenses by January 1st. These licenses will be a must for any grower or seller to operate legally.

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Bob Allen

Bob Allen

Bob Allen is The Daily Telescope''s senior editor. He is also a nationally syndicated newspaper columnist and a bestselling author. He lives in Los Angeles and covers the intersection of money, politics and finance. He appears periodically on national television shows and has been published in (among others) The National Post, Politico, The Atlantic, Harper’s, Wired.com, Vice and Salon.com. He also has served as a journalist and consultant on documentaries for NPR and ShowTime. In 2014, he was the winner of the Society of American Business Editors and Writers' investigative journalism award, and the winner of the Izzy Award for Journalism from Ithaca College's Park Center for Independent Media. He was also a finalist for UCLA's Gerald R. Loeb Award and Syracuse University's Mirror Award. Before becoming a journalist in 2006, Sirota worked in Washington for, among others, U.S. Rep. Bernie Sanders, the U.S. House Appropriations Committee Minority Staff and the Center for American Progress.
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