The Marijuana Laffer Curve

The California left demands tax-rate relief for the high and flighty

WSJ editorial. Excerpts:

Assemblyman Matt Haney of San Francisco said "“If you keep on taxing and taxing a set of businesses that are already competing with folks who are paying no taxes, eventually those folks are going to go out of business entirely, and you’re not going to get anything”" 

"state imposed taxes that are so high and regulation so burdensome that the illegal marijuana growers and sellers are crowding out the folks who follow the rules."

"Marijuana is subject to a 7.75% state sales tax, 15% state excise tax and various local taxes, which have been increasing as cities try to plug budget holes. The 15% excise tax is set to rise to 19% in July"

"He frets that “California is being outpaced in cannabis sales by states like Michigan, which has demonstrated steady growth due to lower taxes and fewer barriers to access the legal industry for both businesses and consumers.”"