Marijuana Supply-Siders
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Marijuana Supply-Siders
Posted by CN Staff on March 24, 2018 at 04:56:16 PT
By The Editorial Board
Source: Wall Street Journal
USA -- California’s experiment in marijuana legalization is spurring some radical thinking on the political left. Lo, high taxes and over-regulation are bad for the economy—or at least the pot economy.Golden State voters in 2016 legalized recreational marijuana on the promise that this would reduce the black market. While marijuana remains a banned substance under federal law, nine states including Washington, Nevada, Oregon and Colorado have legalized consumption and production within their borders. Many are still struggling to draw cannabis businesses out of the shadows, none as much as California. Less than 1% of the state’s 68,150 marijuana cultivators had obtained licenses as of last month, according to a recent report by the California Growers Association. The problem turns out to be the heavy hand of the state.
“The incredible volume of regulation is part of the issue,” the report notes, adding that “consultants and attorneys are often a major cost for small businesses.” Pot growers also complain that the “division of responsibility” among an alphabet soup of regulators—CDFA, BCC, MCSB, Water Board, CDFW, CDTFA, OSHA—can cause confusion, and that “delayed permitting can have make-or-break impacts for businesses.”Other gripes: environmental restoration requirements, water conservation regulations and zoning restrictions, which “have resulted in severely inflated real estate prices that price smaller businesses out of a chance at compliant operation.”But above all, “taxes were identified as the single greatest barrier to entry for small businesses,” according to the report. The state-and-local effective tax rate on marijuana growers is between 40% and 60% in California, compared with 18% in Oregon and 33.1% in Nevada.The notion that excessive taxation and regulation can suffocate small businesses seems to be a revelation to the pot growers, many of whom believe “there is a dangerous concentration of wealth in our economy and see cannabis as a way of counterbalancing that trend,” according to the report. A pair of Democratic and Republican state Assembly members have introduced legislation to slash taxes on pot businesses. They note that Washington state saw an increase in cannabis revenues after cutting taxes—the Laffer Curve at work.All of this new tax wisdom is welcome, but pot growers may also fear that going legal will cramp their growth prospects. California produces about five times as much weed as its citizens consume, thus much is sold out of state—illegally. It’s only a matter of time before the growers start lobbying Congress to legalize pot nationwide and pre-empt the states that haven’t legalized it.Appeared in the March 24, 2018, print edition.Source: Wall Street Journal (US)Published: March 24, 2018 Copyright: 2018 Dow Jones & Company, Inc.Contact: wsj.ltrs wsj.comWebsite: -- Cannabis Archives 
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Comment #2 posted by Hope on March 24, 2018 at 10:37:25 PT
It's a shame to blame the pull of the moon...
but the words lunacy and lunatic keep occurring to me in trying to understand what is happening to the minds of these dangerous people.MAN ACCUSED OF THREATENING TO KILL CONGRESSMAN FILED LAWSUIT CLAIMING MARIJUANA LAW WASN’T BEING ENFORCED
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Comment #1 posted by HempWorld on March 24, 2018 at 08:24:32 PT
"It’s only a matter of time before the growers
start lobbying Congress to legalize pot nationwide and pre-empt the states that haven’t legalized it."Really?Probably only when it involves a marijuana company on the stock exchange with deep or unlimited funding, will they have the millions to 'lobby' (read, bribe) their politicians.The regulation in CA is onerous! It is a pre-emptive strike at the effort to legalize the industry!It is a scheme thought up by politicians and lawyers from behind the scenes to serve their own pocketbook and cause. It is a regulation with NO basis in reality!And so we keep going round and round and the result is that there is no or extremely limited legalization. This is not smart for a state that derives a lot of revenue from tourism and other visitors, think conventions and concerts, etc.
Marijuana Industry
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