Marijuana Taxation Is Inevitable Now

Folks in favor of the legalizing marijuana could, until today, point to a plausible tax-free scenario:  A state could just repeal its Prohibition laws, as New York did for alcohol in the early 1920s.  In that case, the state would collect no tax, but would leave enforcement of non-tax laws to the federal government.  A variation on that scenario would have happened if the federal government had shut down the regulatory schemes in Washington or Colorado, leaving possession legal.

But Eric Holder’s announcement, that the Administration will let state legality operate, takes away the possibility of tax-free marijuana, as a practical matter.  Marijuana, where legal, is no more likely to be tax-free than wine, taxed in every state, even California.

Advertisements

Author: patoglesby

From 1982 to 1990, I worked in tax policy for Committees of the United States Congress. In recent years, I was Adjunct Lecturer at UNC-Chapel Hill's Business School and then Adjunct Professor at its Law School.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s