The Wall Street Journal criticizes the proposed cannabist fire from California

The Wall Street Journal (WSJ) recently worked on a proposal to the San Francisco Matt Haney assembly to stop a planned increase in California cannabis consumption tax. Currently set to 15%, the tax will increase to 19% on July 1. Haney argues that this increase would continue to put a strain on the state's legal cannabis industry by driving consumers to the unsaid illegal market.

In an editorial on Tuesday, the WSJ reacted with skepticism and emphasized the irony of a progressive politician who campaigned for tax relief. The editorial team referred to the “Laffer curve”, an economic theory that points out that higher tax rates can lead to a reduced overall assignment by changing consumer behavior. They found that the concept is theoretically and is being discussed, but the concerns underlines that excessive taxation can work away consumers from the legal markets.

This criticism takes place in the middle of broader challenges for the legal cannabis market of California. A recently commissioned study showed that a significant part of cannabis sales occur on the untracted illegal market, which supports Haney's concerns about the potential negative effects of higher taxes on legal companies.

The WSJ editorial ends with anticipation and suggests that it will be interesting to observe Haney's efforts to control the legislative procedure and justify the proposed tax freeze. This development underlines the ongoing debate on taxation and regulation in the California cannabis industry.