Tags: marijuana | california | taxes | black market

How to Sell Dope in a State Run by Dopes

How to Sell Dope in a State Run by Dopes
The California State Capitol building in Sacramento (Jay Beiler/Dreamstime.com)

By with Michael R. Shannon
Wednesday, 04 December 2019 12:32 PM Current | Bio | Archive

Previously, we would not have thought it possible to find an organization more financially rapacious than a drug cartel. If asked, our first answer would have been “two drug cartels.” And we would have been both facetious and wrong.

California government is far more greedy than a drug cartel. Government in California is so greedy it has accomplished what most people would have thought impossible: The product is so expensive at legal marijuana shops that consumers still prefer to take the risk of buying illegally from the cartels.

The Raconteur Report has done extensive research and compiled a number of stories that are very instructive.

The promises politicians, lobbyists, and other vultures made when promoting the legalization of marijuana are all dope-smoke and mirrors. Legal marijuana will never drive the cartels out of business as long as politicians are in charge of pricing.

KCRA explains, “California’s marijuana industry is undergoing some severe growing pains -- and it’s much bigger than just licensing permits.

Nearly two years after recreational marijuana became legal in California, the black market is still much bigger than legal sales of marijuana.

The hapless owner of ‘All About Wellness’ lists the number of taxes and fees his single storefront must pay each year. The city license is $20,000 a year. The state license is $96,000. That’s just to open the doors. Then each time a sale is made 8.75 percent sales tax goes to Sacramento. Plus, there’s an additional 4 percent cannabis tax the city collects and another miscellaneous wacky tobaccy tax of 15 percent that also goes to the state.

This means to sell one dollar of product; the customer is charged $1.28 and that doesn’t include the cost of the yearly city license and state license which are also added into every sale.

The owner concludes by saying taxes and fees are “making the cost of our product so expensive the black market is booming now.”

Just how booming? Currently there are $8.7 billion in cartel and other illegal sales each year, which is more than twice the amount of legal sales.

One of the byproducts voters were promised when dope was legalized was a reduction in marijuana-associated crime. Evidently the cartels didn’t get that memo either. The Mercury News reports on just one drug bust, “The Special Enforcement Unit of the Butte County Sheriff’s Office made 12 arrests Monday after discovering $164,200 found stashed in a vehicle during a traffic stop on Nov. 6.”

And that’s not all. This traffic stop resulted in a search warrant that hit the crime jackpot.

“The traffic stop spurred a search warrant on properties along Bonnie Meadow Lane in Brush Creek, said a press release issued Thursday by the Sheriff’s Office.

“According to the release, deputies believe the three arrested during the traffic stop were en route to buy a large amount of pot while armed.

“When serving the warrant, multiple men ran into the woods but deputies detained 15 people and arrested 12, all from Mexico.

“Detectives think the operation was being run by a Mexican drug trafficking organization. They destroyed 1,204 live marijuana plants, collected 278.91 pounds of processed marijuana bud, 457.32 pounds of marijuana bud on stem and 184.02 pounds of marijuana shake. The Special Enforcement Unit also located and collected two illegal AR-15 rifles with high capacity magazines, one of which was a short-barreled rifle, one AK-47 with a high capacity magazine, three pistols and ballistic rifle rated body armor. Detectives seized $14,380 in U.S. currency.”

After legalization and in spite of the politicians' empty promises, California residents are left with the worst of all worlds. Legalization has removed the stigma from dope smoking and simultaneously has done nothing to remove the cartels from the market.

Michael Reagan, the eldest son of President Reagan, is a Newsmax TV analyst. A syndicated columnist and author, he chairs The Reagan Legacy Foundation. Michael is an in-demand speaker with Premiere speaker’s bureau. Read more reports from Michael Reagan — Go Here Now.

Michael R. Shannon is a commentator, researcher for the League of American Voters, and an award-winning political and advertising consultant with nationwide and international experience. He is author of "Conservative Christian’s Guidebook for Living in Secular Times (Now with added humor!)." Read more of Michael Shannon's reports — Go Here Now.

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Previously, we would not have thought it possible to find an organization more financially rapacious than a drug cartel. If asked, our first answer would have been “two drug cartels.” And we would have been both facetious and wrong.
marijuana, california, taxes, black market
717
2019-32-04
Wednesday, 04 December 2019 12:32 PM
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