February 27, 2009

California's Bailout

This article from the San Francisco Chronicle looks at the bill introduced by Tom Ammiano in order for California to become the first state to legalize marijuana. As the state of California’s economy declines, Ammiano proposes the idea that taxing marijuana in ways that alcohol and cigarettes are, the state can generate the extra revenue to be put back in to the state. Aside from taxes, Ammiano also reveals that the street value can be dropped by over 50 percent, with increase users of 40 percent, generating more profit for the state. With police making countless arrests each day for possession of marijuana, the legalization of this drug would enable law enforcement to focus on more dangerous issues. He also stresses the strong regulations and expensive licenses people would have to abide by.

I believe the legalization of Marijuana can benefit California’s economy in many ways. The taxation of alcohol and cigarettes has already proven to generate mass amounts of revenue for the government. Adding another regulated substance such as marijuana will only increase this revenue. As for the street value dropping by nearing 50 percent I believe that with the legalization of marijuana and the decreased price would strongly influence more consumers. The more consumers, the higher the demand, the more demand the more revenue California can produce. With lower prices, more consumers, and the government collecting on the tax to better the state, it’s a no brainer.

No comments: