Question

Recent state actions to legalize and tax marijuana have been politically palatable to lawmakers at least in part as a means of raising revenue in a constrained state/local fiscal environment. Considering the array of issues around marijuana taxation, what are the advantages and disadvantages of this approach to taxation. Assess the cannabis taxation as a fiscal policy.

Answer 1

Although prohibited under federal law, marijuana sales are legal in few states. Marijuana are taxed on the basis of percentage of price, based on weight, based on drug potency. Medical marijuana is legal in many states and some of the state levy tax on purchases. Through taxation of marijuana, states have high potential to generate revenue.

Advantages of taxation of marijuana:

1. Dismantling of the black market. For decades the black market was really the only place to find marijuana but after the legalization of marijuana in few states has put them out of business. Now the black market is reduced to some extent.

2. Improved quality and safety control . As the recent fentanyl based heroin problem brought to light there is really no way for end user to know exactly what they are getting when they purchase off the street. Legalizing marijuana creates a set of standard for quality and safety control.

3. Increased tax revenue. One of the greatest pros that have come from is legalization of marijuana, it has lead to Increase of revenue.

4. Availability of cannabis for medical purpose. It has been proved to treat wide array of untreatable conditions.

5. Decrease in gang related drug violence. Gang related grug violence is still very real part of life in many part of uurban areas of state . But legalization of recreational marijuana would remove one of those source of dispute.

Disadvantages of taxation of marijuana:

1. Marijuana is addictive. Scientists are still divided on the subject of addiction. Some claims cannabis is not as addictive as harder drugs like meth and crack. Other claims that over the time user develop dependency.

2. Marijuana user lungs are at higher risk. Many claims that smoking marijuana is more dangerous than smoking cigarettes. It is presumed that marijuana smoker ttakes smoke deeper in lungs which causes risk to lungs.

3. Marijuana is gateway drug. It is thought that onces user try marijuana it is more likely to try other harder drugs

4. Marijuana alters your perception. Like alcohol marijuana alter perception . Example, driving under influence of marijuana can leads to major problem.