Why high cannabis taxation is essentially a stealth ban

How high taxation is essentially stealth prohibition

Prohibition has long been a scourge of society, casting a dark shadow over the freedoms we hold dear. By suppressing the civil liberties of its citizens, drug prohibition has fed the state’s monstrous appetites, allowing it to further invade our lives and undermine the very foundations of liberty.

Legalization emerged as a beacon of hope that would dismantle this oppressive regime, take the wind out of the sails of the black market, and restore balance.

However, we did not foresee the insidious resilience of prohibition, its insidious ability to transform and adapt.

As it turns out, high taxation has become the new, more sophisticated form of prohibition. Instead of wiping out the black market, excessive taxes have given it life, allowing it to survive and thrive in the shadows.

This is the cautionary tale of how even the most well-intentioned efforts to effect change can be undermined by the secret persistence of prohibition’s sinister grip.

The treacherous tale of prohibition and heavy taxation and regulation is one of eerie parallels, as if the two were long-lost siblings separated at birth only to converge on a path of destruction. Both stem from the same misguided belief that the state knows best and can use its power to control the decisions and behavior of its citizens. Just as the iron fist of prohibition sought to stifle the sale and use of illicit substances, so high taxes and regulations stifle the burgeoning potential of legal markets and stifle their growth under a crushing weight.

Think back to the ill-fated era of alcohol prohibition in the United States. In the 1920s, the government’s zealous crusade against alcohol led to a rise in organized crime, illegal speakeasies and tainted, dangerous beverages. Fast forward to the present, and we witness a strikingly similar situation unfolding in the cannabis space. Exorbitant taxes and Byzantine regulations have pushed consumers into the welcoming arms of the black market, where shadowy figures peddle their wares with little concern for quality control or the safety of their customers.

The California cannabis market is a prime example of this phenomenon. Despite government efforts to legalize and regulate the industry, illegal sales continue to eclipse their legal counterparts, reaching a staggering $8 billion annually. The culprit? A complex web of taxes and fees that pushes the cost of legal products to two or three times that of their illegal counterparts.

A chilling parallel can be drawn with the cigarette market in New York, where high taxes have led to a booming contraband trade, accounting for over 53% of all cigarettes sold. The lesson is clear: when governments crack down on a market with heavy taxation and regulation, they inadvertently breathe life into the very black markets they are trying to eliminate.

Like an ominous echo echoing through history, the consequences of prohibition and heavy taxation and regulation have a dark, twisted commonality. Both serve to strengthen the state, restrict individual liberties, and encourage the growth of underground markets. These grim similarities serve as a stark reminder that the struggle for personal liberty is far from over, and vigilance is needed to prevent the revival of prohibition in a new, insidious form.

As the old saying goes, “If you can’t beat ’em, join ’em.” But when it comes to black markets, the best approach is not to join them, but to outsmart and outsmart them. Creating a peer-to-peer marketplace that is accessible, affordable, and operates with minimal regulation may be key to dismantling the cannabis industry’s black market stronghold.

In an ideal world, people over the age of 21 could grow, gift and even sell cannabis in small, “farmer’s market”-like establishments without being burdened by onerous regulations. A $1,000-a-year license, coupled with a cap on individual profits, could help foster a thriving grassroots market that keeps the black market in check.

Under this proposed “single license” sales to pharmacies or authorized retailers would be prohibited and no transactions with organizations or companies could take place. This would ensure a 100% peer-to-peer marketplace where cannabis enthusiasts could support each other and foster a sense of community.

For larger operations, a second, more regulated marketplace could exist, aimed at those generating revenue in excess of the maximum allowed under the first license. The second license would cover all heavy tax burdens and give bigger companies access to the mass retail market. This two-tier licensing system would create a balanced environment in which small, individual vendors could coexist alongside larger companies.

I’ve written about this idea before, but I can’t stress enough the importance of bringing it to the forefront of public discourse. By presenting it as a viable, realistic option, we can help transform the way people think about cannabis regulation and encourage them to embrace alternative approaches.

This dual market model not only encourages a sense of community and camaraderie among cannabis enthusiasts, but also helps fight the black market by providing consumers with a safer, more affordable, and more legitimate alternative. If the legal market can compete with the black market in terms of price, quality, and accessibility, consumers will have little incentive to venture into the shade for their cannabis needs.

As history has shown time and time again, strict regulation and exorbitant taxes only serve to drive consumers into the black markets, where prices are lower and the lure of illegal transactions is too tempting to resist. By implementing a two-tier licensing system that covers both small peer-to-peer transactions and larger corporate sales, we can create a more inclusive and equitable cannabis market that keeps the black market struggling to survive.

The way to defeat the black market lies not in the iron grip of regulation or the crushing weight of taxation, but in the power of a fair and open market that empowers individuals and communities. By promoting a dual market model, we are able to cultivate a thriving cannabis culture that not only undermines the black market, but also fosters creativity, innovation and connections between cannabis enthusiasts.

The key to dismantling the black market’s dominance of the cannabis industry is to beat it at its own game by offering consumers a legal, safe, and affordable alternative.

The two-tier licensing regime proposed here, with an emphasis on peer-to-peer transactions and a balanced regulatory and tax approach, can help create an inclusive and vibrant cannabis market that outperforms the black market.

By championing this idea and bringing it to the forefront of public discourse, we can pave the way for a fairer and more prosperous future for the cannabis community.

As a seasoned cannabis blogger and psychonaut, I’ve seen the landscape of the cannabis industry change dramatically over the past two decades. While there is a growing push for legalization and a shift in public perception, the reality is that political greed, lobbying, and powerful interests continue to shape the laws and regulations that govern this industry. Despite my idealistic vision of a two-tier marketplace that can effectively undercut the black market, I have to admit that the prospect of such a system coming to fruition anytime soon seems unlikely.

The unfortunate truth is that the power dynamics within the cannabis industry are ingrained, and the financial interests of politicians, lobbyists, and big corporations often overshadow the aspirations of the grassroots cannabis community. Unless there is a strong, sustained movement from the ground up, it is difficult to imagine the kind of sweeping changes that would be needed to implement a fairer and more inclusive marketplace.

That said, the anarchist in me recognizes that there is already a degree of subversion and defiance at play in the current cannabis landscape. The so-called “grey market” — that nebulous space between the legal and illegal spheres — is home to countless individuals and small collectives already operating on the principles of the two-tier marketplace I propose. They grow, share and sell cannabis in a way that emphasizes community and collaboration rather than profit and power.

By bringing these gray market operators into the legal fold, my proposed system would not only give them a legitimate space to compete with the black market, but also help divert money away from criminal cartels and into the hands of conscientious, community-oriented individuals. While this may seem like a pipe dream in the current political climate, the mere existence of the gray market – and the passion and commitment of those working in it – is proof that the seeds of change have already been sown.

As we look to the future of the cannabis industry, it is important that we remain vigilant and outspoken in our advocacy for a fairer and fairer system. While the two-tiered marketplace I’m proposing may not be on the horizon, it’s important to keep this ideal alive in our collective consciousness and use it as a guiding star as we continue to navigate the murky waters of cannabis politics.

In the meantime, the best we can do is support grassroots movements, educate ourselves and others about the complexities of the cannabis industry, and continue to push for change at every level. By keeping alive the dream of a fair and open market, we can help shape the cannabis discourse and ensure our voices are not drowned out by the cacophony of greed and power currently dominating the industry.

In conclusion, while I don’t believe the two-tier market I’m proposing will become a reality anytime soon, I remain optimistic that the tides of change are changing, albeit slowly. By continuing to work for a more inclusive and equitable cannabis industry, we can keep the flame of hope alive and work towards a future where the black market is a relic of the past and the cannabis community thrives in a fair and just market.

GUESS HOW MUCH CHEAPER THE BLACK MARKET IS? CONTINUE READING…

BLACK MARKET IS 94% CHEAPER FOR FOOD WHAT???