By Michael Blood / Yahoo News / December 17, 2021
Leading California cannabis companies warned Gov. Gavin Newsom on Friday that the state’s legal industry was on the verge of collapse and needed immediate tax cuts and a rapid expansion of retail outlets to steady the shaky marketplace.
The letter signed by more than two dozen executives, industry officials and legalization advocates followed years of complaints that the heavily taxed and regulated industry was unable to compete with the widespread illegal economy, where consumer prices are far lower and sales are double or triple the legal business.
Four years after broad legal sales began, “our industry is collapsing,” said the letter, which also was sent to legislative leaders in Sacramento.
The industry leaders asked for an immediate lifting of the cultivation tax placed on growers, a three-year holiday from the excise tax and an expansion of retail shops throughout much of the state. It’s estimated that about two-thirds of California cities remain without dispensaries, since it’s up to local governments to authorize sales and production.
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This was entirely predictable. Industry observers have been warning about this for years.
It WAS entirely predicted, Frank, and I bet I read a number of the same articles you probably did back before it went state-legal. There really were a lot of red flags popping up about what the politicians were trying to do.
Funny how only the wealthy, the corporations they own, and the fossil fuel warlords don’t get taxed to death. Commercialization by legalizing was all about revenue for the state not about freedom of choice or to correct the wrongs done to millions of people in this country. The State finally figured out they could make more money this way than in locking people up (well, some states did anyway). Unfortunately the legislators were a little carried away with the possibilities of limitless cash flow in their taxation schemes. Then they could give even more tax breaks the wealthy. See how that works?
But hey, if it doesn’t work out they can always go back to Prohibition and increase the prison population again, yes? I’m sure the cops and DEA etc etc are all for that happening.
Some days I get so cynical about motives…
sealintheSelkirks