budget
In 2005, for every $1 collected in taxes on alcohol and tobacco, almost $14 was spent to repair the vast social damages caused by their use. Legalization will see increased use and increased social damage.
The “medical” marijuana experience has shown that growers and dispensaries sell marijuana on a cash basis and are not paying taxes now even though required. It is impossible to track sales unless they are investigated by law enforcement. This has put a huge burden on their already stretched budgets.
Under legalization dispensaries will be primary sellers of marijuana. Do we expect them to suddenly start paying taxes?
The tax burden falls to cities and counties under the legalization initiative. The State cannot collect taxes from the sales of marijuana. This monumental and expensive task falls to each of the State’s 416 cities and 58 counties. The result will be a patchwork quilt of taxes and procedures across all local governments. Will your city or county be able to collect taxes from the large, powerful marijuana cartels operating in your area?
Regulating the growing and selling will fall to your same under- funded cities and counties. Anyone will be able to grow and sell marijuana, even those with a criminal record. Much of the marijuana in California is supplied by illegal drug cartels; legalization as proposed, does nothing to fix that problem. A Rand researcher concludes, “There is a tremendous profit motive for the existing black market to stay in the market as they can cover their costs of production and make a nice profit.”
Employers will be forced to accommodate marijuana usage and will not be able to test for use in their employees. The federal government, the State’s largest employer requires a drug-free workplace. If this can’t be guaranteed, jobs will go to other states.
No employer, public or private will be able to protect themselves from liabilities of marijuana use.
