It’s been a long time coming, but California has finally come to terms with a harsh reality: you can’t just slap a hefty tax on legal businesses and expect them to thrive while the black market continues to flourish. After years of struggling to keep their heads above water while cartels rake in the dough, the Golden State is finally admitting what we’ve been shouting from the rooftops all along.
It’s a classic case of trying to have your cake and eat it too. The state thought they could legalize marijuana and reap the benefits of a booming industry while also filling their coffers with tax revenue. But as it turns out, you can’t have a successful legalization if you price yourself out of the market.
For years, legal businesses have been fighting an uphill battle. They have to comply with strict regulations, pay exorbitant fees, and deal with a constant barrage of red tape. Meanwhile, the black market operates with ease, avoiding all of these obstacles and undercutting legal prices. It’s no wonder they’re laughing all the way to the bank.
But now, California is finally waking up to the reality that they can’t continue down this path. The state’s cannabis tax revenue fell short of projections by a whopping $100 million in the first half of 2018. And it’s not just the legal businesses that are suffering. The state’s budget is also taking a hit, as they struggle to make up for the lost revenue.
It’s a tough pill to swallow, but it’s time for California to face the music. They can’t keep relying on the promise of tax revenue to justify their high taxes. It’s a flawed system that is ultimately hurting the very industry they sought to legalize.
But there is hope on
