Unfortunately U.S. government doesn't work that efficiently anymore. Once the tax revenue starts coming in, they will only add more gov't programs and more costs that will swallow up most of the new money generated by the tax, continuing this govt's destructive cycle into more debt. But lets look deeper into what CA announced-- the legalization of MMJ for "recreational" use in order to raise tax revenue. (looks like Arnold is reading the tea leaves and knows his Prop 1A, 1B will not pass and his state will be at square one with it's $20-30billion budget debt). If MMJ is to be legalized, like CA is hinting toward, it has to be free to grow and be legal in every state.
Okay let's say CA does legalize it-- If that is to be the case, then no one would pay those taxes. It's not like a cigarette or a liquor which requires a state/fed permit and a process to produce into a consumable product. Once people start paying the prices for MMJ, they'll start planting in their yards and then the states will have no choice but to raise property taxes higher. Wherever MMJ grows, they will try to tax it. But it's a white rabbit and they'll never be able to catch up to it. Another problem with state legalization is that states like CA look at all the money being made at the medical clubs, and they immediately assume the revenue on paper will increase or stay the same if it's legalized. If you really consider the policy discernibly, state decimalization without federal support seems to cause more problems than it solves. there will be a sharp increase in suppliers throughout the state. More suppliers means more competition and abundant supply. That will drive down prices in the state, and ironically the growers'/sellers' costs-to-operate will remain the same (certainly if you add in the new sales tax). The lower prices in CA and the increase in supply will drive the sellers to the Eastern and Northern borders of the state. And that leads us to the task of enforcing new laws against exporting MMJ to outside states and Canada. That will eventually become overwhelming for the state, all while normal non-smoking citizens leave the state in an exodus. And if you count the millions of illegal immigrants already in CA and the politicians love for them, it's not far fetched to assume the Mexican cartels will move-in as fast as buyers line up and CA will fall deeper into a third world state. So until the feds (Obama) change the laws across the country, state MMJ legalization will only increase crime and shady Mexican immigrants coming into the country. And what will the CA Governor do then when he has to fight an invading mafia from another country that has a lot more money than the whole state of CA? Not good.
I think federally legalizing MMJ is Obama's "Ace-in-the-hole" and we won't see it until his second term after a strategically placed campaign promise in 2011. Obama knows the economy can be fixed just by reversing his own policies since Jan. 20th. Obama doesn't really need or want a "MMJ tax" fix (or any tax fix). he wants to destroy the economy, and he has already publicly confirmed that. He has told the people he is destorying the economy on purpose, and claimed Wall Street will playa smaller role in America. When people start realizing what he is doing to the U.S. and the pressure finally hits him, then he might come out and legalize MMJ. And MMJ will make things all better. Or so he might think...
