Pubdate: Wed, 22 Jun 2016
Source: Arizona Republic (Phoenix, AZ)
Copyright: 2016 The Arizona Republic
Contact: http://www.azcentral.com/arizonarepublic/opinions/sendaletter.html
Website: http://www.azcentral.com/arizonarepublic/
Details: http://www.mapinc.org/media/24
Author: Patrick Tighe
Note: Patrick Tighe worked on the governor of Colorado's marijuana
coordination team in 2014.
LEGALIZE MARIJUANA FOR TAXES? IT'S NO POT OF GOLD
A store displays two identical TVs: One costs $575, the other is on
sale for $533. Which do you choose?
I know this is a dumb question. However, this is the precise choice
some Arizona residents will face if citizens pass the Regulation and
Taxation of Marijuana Act - the state initiative seeking to
decriminalize marijuana for recreational purposes.
Proponents arguing that Arizonans should vote for this initiative
dangle before voters the prospect that marijuana, once "regulated
like alcohol," will bring in massive tax revenues: between $40
million and $113 million, as reported by The Arizona Republic, if the
act goes into effect. But these estimates fail to account for the
undercutting effect of Arizona's medical-marijuana market on the sale
of recreational marijuana.
Unless Arizona does something to rein in medical marijuana taxation,
it'll just be chasing smoke.
Under Arizona law, a person who obtains a medical-marijuana card can
purchase 2.5 ounces of marijuana, which is taxed at only 6.6 percent.
If passed, this new initiative will allow any person - with or
without a marijuana-medical card - to purchase 1 ounce of
recreational marijuana.
However, here's the kicker: Recreational marijuana will be taxed at
the much higher rate of 15 percent. Although there is no substantive
difference between medicinal marijuana and recreational marijuana,
the act will effectively create two markets in which the same good is
sold for two prices.
So, if you could purchase 1 ounce of marijuana at $533 or 1 ounce of
marijuana at $575, what would you do?
There's no need to guess. Colorado has provided us with the answer.
Originally, Colorado predicted it would receive in 2014 aboutd $117
million in tax revenue from the sale of recreational marijuana.
However, the state had to downgrade its estimate again, and again,
and again. In the end, Colorado received only $44 million in revenue
from the sale of recreational marijuana in 2014.
The reason? Not enough of Colorado's medical-marijuana users
purchased recreational marijuana.
Similar to what Arizona may do, Colorado taxes medical marijuana at
just 2.9 percent while taxing recreational marijuana at 27.9 percent.
Colorado's significant tax differential incentivizes
medical-marijuana users to not purchase the more expensive
recreational marijuana. What happened in Colorado will likely happen
in Arizona if the Regulation and Taxation of Marijuana Act is passed.
Around 70 percent of all marijuana is consumed by 20 percent of
marijuana consumers, who smoke at least once per day.
Any rational marijuana consumer who consumes this much marijuana
would have long since gone out and obtained a medical-marijuana card,
with complaints of "pain" and no other underlying medical condition.
(In fact, 70 percent of all Arizona medical-marijuana users list only
"pain" as the underlying medical condition.) With a medical-marijuana
card in hand, why would any rational pothead give up purchasing pot
at $533 per ounce for pot at $575 per ounce?
This is not necessarily an argument against the voter initiative.
Arizona can avert this tax-differential problem and still
decriminalize recreational marijuana. One way to accomplish this is
for state regulators to raise the sales-tax rate for medical
marijuana to 15 percent. All that is required is foresight and action
by Arizona policymakers to avoid the problem like the one Colorado.
Proponents for this act argue that we should regulate marijuana like
alcohol. Because we don't tax the same types of alcohol at different
rates, why should we do so with marijuana?
Unless the state properly incentives marijuana consumers who don't
need medical marijuana to purchase recreational marijuana, we will
simply be chasing a pot of gold.
Patrick Tighe worked on the governor of Colorado's marijuana
coordination team in 2014. Email him at follow on
Twitter, OPINIONS. AZCENTRAL.COM
Your bias is showing in that the right should agree with the left,
but the left should only acknowledge what the right says about gun
violence ("Left and right must build trust to solve gun violence,"
June 19). How about being a bit more balanced in your editorial policy? Sedona
Incomplete release of shooter's call amounts to censorship
Government releases only a portion of the 911 call by the completely
rational Orlando terrorist. This is government censorship at its
finest and completely wrong.
There will be no future prosecution. Americans are entitled to the
whole truth, nothing but the whole truth. The Orlando shooter is not
a lone wolf, this not workplace violence, this act of war was not
created by a video, but brought to you alive and dead by ISIS.
Painting Orlando in any other light other than an act of terrorism,
is a government lie. To hear and judge this Mateen's sanity is ours
and ours alone. No government whitewash today, Barrack and Hillary. -
- - Sun City
Ridiculous penalty at U.S. Open suggests rule change is in order
Time to change the "ball moved" rule again! The USGA managed once
I believe the first time I was aware of the flag flying at half staff
was when President Kennedy was assassinated. I always thought that
that honor was reserved for Presidents and other high ranking
government officials. I was wrong.
Now as I drive down Frank Lloyd Wright Blvd. past the car dealers
with their large flags flying in glory, it seems that more often than
not the flag is at half staff. With all the violence permeating
America these days I suggest we leave it at half staff permanently.
- - Scottsdale
It may be a dry heat but, boy, it's hot even by our standards
Of course we tell family and friends back East that we go from
air-conditioned location to air-conditioned location here in the
summertime. But, this is awful! - Litchfield Park
The myriad of reasons this appellation befits the Donald
Donald Trump is a master at dubbing his opponents (Lyin' Ted, Little
Marco, Low Energy Jeb, Crooked Hillary). Those opposing Donald Trump
have not even tried a retaliation in kind. Here is a suggestion:
Donald the Duck (or, for
All of the major cable companies in this countries providing phone
service block illegal robocalls except for Cox.
There is a service promoted by the Consumer Union called Nomorobo
that blocks such calls automatically. I am a senior, thus a target
for the scamming scoundrels that prey upon the elderly. I sometimes
receive up to five calls a day.
Since I am on the National No-call List, it is clear that every one
is a scam. I have spoken to Cox whose representatives refused to
redirect my complaint beyond the initial agent I spoke to. Isn't it
time to get rid of their franchise here? What rights do we as consumers have?
- -
It's summertime, folks; perhaps we should be exercising indoors
Due to the excessive amount of mountain rescues recently, I believe
we should adopt a new slogan: Save a fireman . ... buy a treadmill. -
Scottsdale Phoenix
The disappearing lessons of cursive have consequences
Please, Arizona Board of Education, teach this generation of our
children how to write in cursive. In my 83 years, I have never heard
of such a stupid plan, the idea not to teach writing.
How about when they have to sign legal documents?? This was brought
to my attention when one granddaughter, after dropping out from being
bullied in 7th grade, was sent to live with relatives in Virginia
Beach, where they gave her a tutor to teach her to write her name.
I'm sure they must have said, "Where are you coming from?"
It's no wonder we can't find an educated person to lead this country.
- ---
MAP posted-by: Jay Bergstrom