Saturday, October 25, 2014

Effective Tax Rates on Recreational Marijuana:

Washington state 44%
Colorado 30%

Alaska 21%
Oregon 15%

This is what is behind the legalization of marijuana. It's a government tax grab.

(Data via Sudeep Reddy)


  1. That's usually what happens. Look at alcohol, the numbers (otherwise known as the daily pick 3 and various other off shoots like lotto, powerball, etc), and pretty much everything government made illegal but is now legal. Government claims a monopoly, a crony cartel, and/or a very high tax rate.

  2. A few years back, before pot was legalized at Washington state, I was at a farmers’ market in the Seattle area. An elderly couple was soliciting signatures on a legalization petition and were calling people’s attention with a banner that read:

    1. Legalize it
    2. Regulate it
    3. Tax it

    I told them it’s a shame they had to ruin their message with points 2 and 3 and declined to sign.

    Nowadays it seems that in order to agree to decriminalize anything, socially-conservative liberals (i.e., the many liberals who actually lead a fairly conservative lifestyle) want to see “concessions” in the form of over the top taxation and extensive regulations.

  3. And like all taxation people are finding ways to avoid paying. I have relatives in CO and instead of going to a 'regulated' pot shop and paying the 30% premium, they're just finding individuals selling from the their home, where they're allowed to keep X number of plants and paying for it in cash for a lot less.

    That's the irony, rather than eliminating the cartels and dealers, which legalization does, the Govt has kept them alive by imposing a huge tax.

  4. I live in Washington State and was visiting a friend when his dealer (I prefer entrepreneur) stopped over and said his business hadn't been impacted at all and predicted it would increase.