CO mj tax cut idea

A Colorado bill, HB 15-1367, would cut its special retail excise tax rate on marijuana from 10 percent to 7 percent. Having come to think that early taxes have proved too high, that makes sense. But what doesn’t make sense to me is the effective date – July 1, 2017. Now is the time the industry needs relief.  Twenty-six months from now, prices may be much lower. A lower rate (7 percent) on a lower base (lower prices due to plenty of supply, etc.) just loses revenue. I would think make the rate 7 percent now, and let it bounce back to 10 percent in mid-2017.  Or at least wait and see.

Two recent bills make sense to me, with increasing rates year by year: Congressman Blumenauer’s bill, and a Massachusetts House bill.

 

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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.

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