Localities in Colorado are starting to think about imposing (on top of state taxes) marijuana taxes of their own.
That reminds me of this story:
Steve and Mark are camping when a bear suddenly comes out and growls. Steve starts putting on his tennis shoes. Mark says, “What are you doing? You can’t outrun a bear!” Steve says, “I don’t have to outrun the bear—I just have to outrun you!”
My hunch is that the Federal Government will not take a liking to low after-tax marijuana prices – because of leakage to kids and to other states. So any company with low prices (likely to be in a jurisdiction with low taxes) might be first in line for Federal crackdown. Keeping prices a little higher than in the lowest-tax town might be enough to direct Federal action elsewhere, at least for a while. We’ll see.
The Center for New Revenue 