Question

In: Economics

Briefly describe the different methods that Washington and Colorado used to achieve marijuana legalization. Which of...

Briefly describe the different methods that Washington and Colorado used to achieve marijuana legalization. Which of these two do you find most effective?  

Solutions

Expert Solution

Washington : In Washington growing of Marijuana plants in homeland is legally prohibited. In this country, a heavy percentage of tax is imposed on sales of Marijuana. An excise tax of 25% is imposed on sales of marijuana from grower to processor, processor to retailer and retailer to customer. There is also addition of local taxes along with the excise tax. In Washington, vertical integration is forbidden. Growers, processors and retailers must be licensed in order to continue marijuana business. In Washington, there is also thorough checking of criminal backgrounds of all license holders. There is also extensive product safety testing.


COLORADO : In COLORADO, growing of marijuana plants is permitted in homeland but it is limited up to 6 plants with three flowering at any time. In order to legalize marijuana, COLORADO is maintaining a good tax structure, 15% excise tax on cultivator, 10% special sales tax and 2.9% standard sales tax. In addition to these tax rate, there is also imposition of local tax. In COLORADO vertical integration is allowed for first 9 months - 2 years as per the locality. Grower, processors and retailers are licensed by Marijuana Enforcement Division. Medical users must be registered through Department of Public Health and Environment to use marijuana legally. In COLORADO there is extensive criminal background checking for all licenses. There is also tracking system from seed collection to sale of marijuana. COLORADO also conducts product safety testing to ensure the quality of product.

In my opinion the following two are the most effective methods to achieve marijuana legalization.


Firstly, issue of license to growers, processors and retailers of marijuana should be mandatory and there must be checking of criminal background of all license holders.


Secondly, imposition of heavy tax rate on marijuana from production to sale is one of the ideal method to legalize marijuana.


Related Solutions

Describe the different data methods used by clinicians. which methods are the most efficient and why...
Describe the different data methods used by clinicians. which methods are the most efficient and why are some approaches favored over others by clinicians? How is information stored and retrieved in the EHR?
Respond to the following questions: a) Describe the evolution of the marijuana industry (in Colorado); What...
Respond to the following questions: a) Describe the evolution of the marijuana industry (in Colorado); What are the conditions that now explain an oligopolistic industry structure? b) What are the “welfare” (as discussed in Mankiw) implications of this industry structure? c) What are the public policies toward this industry/market? In your opinion, are they appropriate or inappropriate? Are there other policies in relation to oligopolies that should be implemented?
Describe the evolution of the marijuana industry (in Colorado); What are the conditions that now explain...
Describe the evolution of the marijuana industry (in Colorado); What are the conditions that now explain an oligopolistic industry structure?   What are the “welfare” implications of this industry structure? What are the public policies toward this industry/market? In your opinion, are they appropriate or inappropriate? Are there other policies in relation to oligopolies that should be implemented?
Briefly describe methods used in recycling of Steel and Aluminum. Which product make use of such...
Briefly describe methods used in recycling of Steel and Aluminum. Which product make use of such recycled Aluminum and Steel.
List and briefly describe the four different methods of forecasting available.
List and briefly describe the four different methods of forecasting available.
Compare Washington state and Colorado’s recreational use of marijuana policy. Describe the differences in policies with...
Compare Washington state and Colorado’s recreational use of marijuana policy. Describe the differences in policies with particular attention to the tax structure of each.
Briefly describe the different methods for synchronizing communication between two devices.
Briefly describe the different methods for synchronizing communication between two devices.
If different methods are used, can it be decrease live load? If different methods are used,...
If different methods are used, can it be decrease live load? If different methods are used, can it be decrease live load? i dont have to much time ple help
Name and describe briefly the 2 different types of dating methods utilized in the geology related...
Name and describe briefly the 2 different types of dating methods utilized in the geology related sciences with examples?
• Describe how different methods of birth control can be used to prevent pregnancy
• Describe how different methods of birth control can be used to prevent pregnancy
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT