Here’s what low, unindexed taxes do

October 19, 2014 § Leave a comment

Photo on 10-19-14 at 9.09 AM #2

We Are Better Than This — Kleinbard

October 13, 2014 § Leave a comment

Ed Kleinbard’s book starts with a free-market slant (much of the following is paraphrased):

 Private enterprise ≈ path to greater national wealth and is conducive to the preservation of personal liberties.

And doesn’t oppose regressive taxes:

 Surprisingly, the progressivity of tax rates is negatively correlated with the reduction in inequality a country achieves.

But moves on to blast anti-tax hysteria: « Read the rest of this entry »

Rose Habib on the Bud-Trim Line

September 22, 2014 § Leave a comment

Rosemary Habib is the author, along with Reuben Finighan and Steven Davenport, of “Testing for Psychoactive Agents,” BOTEC Analysis Corp., (Aug. 24, 2013), which seems to me by far the leading analysis of that topic done to date. She graciously agreed to let me print her thoughts about the bud-trim line for a marijuana tax.

My question:  

Updating  Let’s say there’s a huge tax on bud and a small tax on trim.  Would that give producers an incentive to cheat – to shift bud, at the margin, just a little, into the trim category and then use it to make concentrates?

Might not a tax-evader deliberately characterize bud as trim to boost the THC content – and thus value – of concentrates?  That evasion depends on the purchaser believing that he is getting a better, more valuable product — edible, vaporizer cartridge, or whatever.  And that belief would need to come from THC labeling (however inaccurate) or some other claim or experience or report.

Rose Habib’s response:

My first impression is, yes it could be more economical to move lesser buds over into the trim pile.  A lot of that depends on the market.  « Read the rest of this entry »

Official CO document freezing average market rate

September 17, 2014 § Leave a comment

This document freezes producer marijuana taxes through the end of 2014: Average market rate late 2014.

NY bill: bud $50/oz.; concentrates $200/oz.

September 14, 2014 § Leave a comment

These bills sometimes disappear. Here is the text of New York State Senator Liz Krueger’s bill imposing “an excise tax of $50.00 per ounce on marihuana and $50.00 per quarter ounce of concentrated cannabis.” Accessed 14 September, 2014.

BILL NUMBER:S6005 « Read the rest of this entry »

Bud-trim line, continued

September 14, 2014 § Leave a comment

Several posts here have looked at whether taxing bud at one rate and trim at another is viable.

One argument that the line is self-enforcing, as bud is smoked and trim made into concentrates.   But even without a tax incentive to put bud in the trim pile, businesses do just that.  Here is an ad, downloaded 14 September 2014, promising concentrates made from . . . ALL BUD NO TRIM! « Read the rest of this entry »

Colorado freezes marijuana tax rates

August 30, 2014 § Leave a comment

Colorado just avoided a 50-percent hike in the rate of tax on flowers or bud, from 62 cents a gram to 95 cents.  An administrative tax increase was squarely on the table, put there by a finding of fact by Colorado’s Marijuana Policy Group.  But the Department of Revenue rejected that finding and held rates steady.

« Read the rest of this entry »


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