SAN FRANCISCO, July 15, 2009

Legal Pot Would Bring in $1.4B for Calif.

Tax Officials Release Analysis of Revenue Benefits for Cash-Strapped State; Legalization Bill Pending

  • An analysis by tax officials in California shows that the cash-strapped state could rasie more than $1.4 billion a year in revenue from taxing and regulating legalized marijuana.

    An analysis by tax officials in California shows that the cash-strapped state could rasie more than $1.4 billion a year in revenue from taxing and regulating legalized marijuana.  (CBS/AP)

(AP)  A bill to tax and regulate marijuana in California like alcohol would generate nearly $1.4 billion in revenue for the cash-strapped state, according to an official analysis released Wednesday by tax officials.

The State Board of Equalization report estimates marijuana retail sales would bring $990 million from a $50-per-ounce fee and $392 million in sales taxes.

The bill introduced by San Francisco Democratic Assemblyman Tom Ammiano in February would allow adults 21 and older to legally possess, grow and sell marijuana.

Ammiano has promoted the bill as a way to help bridge the state's $26.3 billion budget shortfall.

"It defies reason to propose closing parks and eliminating vital services for the poor while this potential revenue is available," Ammiano said in a statement.

The way the bill is written, the state could not begin collecting taxes until the federal government legalizes marijuana. A spokesman says Ammiano plans to amend the bill to remove that provision.

The legislation requires all revenue generated by the $50-per-ounce fee to be used for drug education and rehabilitation programs. The state's 9 percent sales tax would be applied to retail sales, while the fee would likely be charged at the wholesale level and built into the retail price.

The Equalization Board used law enforcement and academic studies to calculate that about 16 million ounces - or 500 tons - of marijuana are consumed in California each year.

Marijuana use would likely increase by about 30 percent once the law took effect because legalization would lead to falling prices, the board said.

Estimates of marijuana use, cultivation and sales are notoriously difficult to come by because of the drug's status as a black-market substance. Calculations by marijuana advocates and law enforcement officials often differ widely.

"That's one reason why we look at multiple reports from multiple sources - so that no one agenda is considered to be the deciding or determining data," said board spokeswoman Anita Gore.

Advocates and opponents do agree that California is by far the country's top pot-producing state. Last year law enforcement agencies in California seized nearly 5.3 million plants.

If passed, Ammiano's bill could increase the tension between the state and the U.S. government over marijuana, which is banned outright under federal law. The two sides have clashed often since state voters passed a ballot measure in 1996 legalizing marijuana for medical use.

At the same time, some medical marijuana dispensary operators in the state have said they are less fearful of federal raids since U.S. Attorney General Eric Holder said the Justice Department would defer to state marijuana regulations.

Advocates pounced on the analysis as ammunition for their claim that the ban on marijuana is obsolete.

"We can't borrow or slash our way out of this deficit," said Stephen Gutwillig, California state director of the Drug Policy Alliance. "The legislature must consider innovative sources of new revenue, and marijuana should be at the top of that list."

Ammiano's bill is still in committee. Hearings on the legislation are expected this fall.

© MMIX The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
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by nottellin1 August 2, 2009 11:49 PM EDT
I wrote editorial letters and spoke on the radio about taxing back in 1991. It should be legalized and taxed throughout the US. Currently, much of the money spent by buying illegal drugs ultimately ends up overseas and reduces our money supply. Legalization could save the tobacco companies too as the would be the obvious mass growers for the entire US. The worst that could happen is there would be fewer agro Americans.

I gotta say that going to the pot store is one of the most interesting experiences in my life. There is a menu of 5 or 6 different strains each of sativa and indica's, priced in grams and up, rice crispie treats, carmel corn and other treats. One shop gave me a 4 inch long fatty as a new customer gift. A perscription for medical marijuana is a wonderful thing!
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by TNisgoodenoughforme July 21, 2009 2:13 PM EDT
Whiskey is much worse than pot. Get over rumors it's not bad & so easy to stop. The government needs to wise up & start making tax money of it.
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by hwy71so July 20, 2009 11:31 AM EDT
"Legal Pot Would Bring in $1.4B for Calif."

Problem is, the pot smokers won't go to a source that will include tax in the price tag and the dealers won't fess up. And responsible citizens will be left footing the bill.

Dope heads need to clean up.
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by destination2013 July 21, 2009 9:29 PM EDT
Where do you get your idea? Who says pot smokers won't go to a source that will include tax in the price tag? If pot were fully legal, the price of an 1/8 bag would drop down to $40 or $30. That with an $8.00 tax comes to $38 or $48. STILL Cheaper than the average $50 that non-legal or limited-legal marijuana costs.

Pot heads are donating money to MPP to get ads on the air in California that are begging the State to tax them.

The dope heads ARE cleaned up.

It's the Mainstream Average ******* TV-watching 2.2 kid coke n pepsi Democrat n Republican, Christian n Jewish Simpletons who need to clean up.
by gunownerdan July 20, 2009 10:31 AM EDT
Prohibition of drugs and prostitution can never work.
All prohibition does is make it much more dangerous for everyone involved.
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by Dgunner July 19, 2009 9:53 AM EDT
I have been a user of prescription opiates for over ten years . I can tell you that the legalization of marijuana would certainly give my liver and kidneys a break from the opiates. Anyone who says pot doesnt help with pain does not have the pain it helps. I have impact nerve damamge as well as skeletal injuries from vietnam. The circlation is increased a great deal after smoking and relieves chronic muscle ache.There are people who find a way to abuse anything including water . Look at people do with butter and margerine. I dont see how people could eat anything that you that you can leave out on a cabinet for days then still eat it.Tylenol and acteominophen products killed more people last year and in the past decade than marijuana.Devoloping young minds DONOT need to smoke pot but us old veterans would like to be able to take a vacation from some of the opiates and narcotic drugs shoved at us by the VA drs. and the shrinks who can only summise the chronic pain since most of them have never had a serious bodily injury or been shot or jumped at 1500 feet.
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by krisd999-2009 July 18, 2009 10:39 PM EDT
Dont diss republicans. I am a republican and for 100% legalization of all drugs. It shrinks government enormously and thats exacly republican. If we stop the flow of money to the taliban by legalizing popies, it could end the war that Obama has expanded and save even more money- that's republican. Anything that shrinks government..
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by earthling76 July 17, 2009 12:15 PM EDT
Source: www.examiner.com

Yesterday, Congressman Barney Frank (D-Mass.) introduced a bill in the U.S. House of Representatives to eliminate all federal penalties for marijuana possession. This came only one week after he also introduced a bill to protect medical marijuana patients.

The Personal Use of Marijuana by Responsible Adults Act of 2009 would eliminate the threat of federal arrest and prison for the possession of up to 3.5 ounces of marijuana and the not-for-profit transfer of an ounce of marijuana; nationwide!

What's more, last week Congressman Frank introduced the Medical Marijuana Patient Protection Act, which would allow states to protect medical marijuana patients from arrest and jail without federal interference, as well as allow pharmacies to dispense marijuana to patients with a doctor's recommendation. You can take action on this bill here,....... https://secure2.convio.net/mpp/site/Advocacy?cmd=display&page=UserAction&id=339
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by pepperwood2 July 16, 2009 10:27 AM EDT
Foreclosures rise 15 percent in first half of 2009

WASHINGTON - The number of U.S. households on the verge of losing their homes soared by nearly 15 percent in the first half of the year as more people lost their jobs and were unable to pay their monthly mortgage bills.
Foreclosure filings rose more than 33 percent in June compared with the same month last year and were up nearly 5 percent from May, RealtyTrac said.

However, I take it that's not as important as the 1 Billion in weed revenue that Caliphonia will raise towards paying off the 26 Billion Debt Deficit that the Liberal Politicians of Caliphonia got The People Into while smoking & inhaling Pot. Fuzzy math???? More Crack Houses to become available. Sometimes the Truth Hurts. Ignore it and it will go away right? So very sad. Business as usual.
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by dmunkey78 July 16, 2009 9:47 AM EDT
Why is everything so black and white with prohibitionists? Why is their way the ONLY way? The conservative, republican, right wing (whatever), sits and complains about all this trouble that they think just magically appeared after a Dem got into office. I mean we couldn't be in our current crisis because of war over some ex junkie turned dogma addict with major "daddy issues", needed to prove to the world that he's a bigger "man" by attacking a country his father failed at? And it most certainly couldn't have been all those ridiculous tax breaks and embargos for the wealthy, ya know cause when the top is rich the wealth trickles down. Everybody knows that we must water the tops of plants the roots (bottom) will get what they need.

To quote my third grade teacher (since most of you "whatever wingers" don't seem to posses the thought process past that of a spoiled child), "When you point your finger at someone, you've got 3 more pointed right back at you."

And to all those out there that feel that personal consumption of a substance by an individual is a "shootable offense". SEEK PROFESSIONAL HELP. I think I'd feel safer in a car full of stoners rocketing down the freeway with no brakes then alone with you in an empty stadium.

People (ALL OF HUMANKIND), it's time to stop seeing things in black and white, red and blue. We are destroying ourselves as a country, a society, as human beings in general. The technology age proves that things change (they need to), and old school isn't necessarily the right school. People need to stop worrying what their neighbors are doing and start worrying what they themselves are doing.

Unless the actions of an individual is causing you or someone else direct injury or death then there should be no cause for concern by you. In other words, your neighbor is smoking a bong on their front porch, is it hurting you? Your gay co-worker has just married the person they love, is that going to destroy your lives?

Irony is that true Republicans (the original party) were in favor of an individual?s rights, and the need to keep government out of homes. But today all you so called Republicans are in favor of Freedom of information act. In favor of laws that restricts an individual in the choices they can make for themselves.

And for the people who say that there is no hypocrisy in our current Cannabis laws then explain this to me.
Why is it the FDA approves and pushes a pill with 100% THC (psychoactive chemical in Cannabis), while at the very same time the DEA is screaming about this new deadly "Super Weed" with its mind warping 13% THC. I mean math the true undeniable universal language would say 100 is more than 13, right?

Eh, but this is just one evolved primates opinion.
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by imprisoncheney July 16, 2009 9:34 AM EDT
ithoughtitwasfunny is a protitute/lobbyist/pill-pusher for Big Pharma . . . go figure.

If Big Pharma was given the monopoly on marketing and distribution of marijuana, packs of marijuana cigarettes would be in every 7-11 coast-to-coast, tomorrow.

That's what's driving policy -- Big Biz Mafia interests . . . and nothing else.
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by pubsrtoast July 16, 2009 9:12 AM EDT
They better do something to placate the masses that are sitting home both unemployed and fuming.
Reply to this comment
by stuart2020 July 16, 2009 8:54 AM EDT
by IThoughtItWasFunnyNupe July 16, 2009 12:59 AM EDT

Just keep your krap out of my neighborhood and stay safe because as far as I'm concerned bringing it to mine is a shooting offense..
===============================================

Why do you always act so foolish? What the hell is wrong with you anyway? I mean really...you have some serious issues girl. Don't you think that pot is already everywhere? Including YOUR neighborhood? So this is just another example of you running your ignorant mouth, spewing lies and such. Go shoot somebody already you dumb neo-con!
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by imprisoncheney July 16, 2009 9:39 AM EDT
stuart --

Don't waste your time with ithoughtitwasfunny -- she's a fascist Foxsnooze troll who gets off on posting the sicko jibberish spewed out from Karl Rove's Propaganda Machine over there.

Besides being extremely anal-retentive, she also suffers from the delusion that she's actually human.

Her postings do more damage to the weepublicans than anything else, so I hope she continues . . . I love a good laugh.
by pepperwood2 July 16, 2009 8:42 AM EDT
What were these brilliant mind expanding Liberals smoking when they decided to tax & spend the People of Caliphony into oblivion?? Now they have to come up with another scheme to replace The American Dream. So Sad!

10 Reasons Employment Is Worse Than You Think! From The Business Insider, July 14, 2009:

Mort Zuckerman (of all people) has an op-ed in today's WSJ explaining why the jobs situation, which is quite clearly horrific, is even worse than you think.

Here are his points, condensed

* 185,000 workers in the June number were the product of statistical sampling, but could not be verified by the government.
* Companies are asking employees to take unpaid leave.
* 1.4 million unemployed workers weren't counted because they're not searching for work.
* Part-time employment has doubled to 9 million.
* The work week is 48 minutes shorter than when the recession began.
* The number of long-term unemployed (4.4 million) is at an all-time high.
* There were no wage gains in June.
* The goods-producing sector lost over 223,000 jobs just in June.
* When business picks up, businesses will just add hours to existing workers, rather than create new jobs.
* Old business lines are being eliminated entirely, not shrunk down, decreasing the odds that the unemployed will be able to find work.

Says Zuck: It's time for a serious second stimulus -- not a hodge podge of pork and transfer payments, but a truly big and bold infrastructure program (like what we were promised the first time, but which didn't happen) to put people to work.
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by stuart2020 July 16, 2009 8:56 AM EDT
This thread is about weed stimulus not money stimulus.
by South-of-Heaven July 16, 2009 8:31 AM EDT
About as many people show up stoned to work as they do drunk,
factor in the hungover effect and its probably higher.
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by formrusmcsgt July 16, 2009 8:29 AM EDT
How about the ever-popular "gateway" argument, eh?

You know, the "weed leads to harder drugs" argument against legalization.

If these morons would do a little research on actual usage numbers, they'd realize how absolutely absurd that argument is.

Lifetime herion use stats for the US - 1.2% of the population

Lifetime marijuana use stats for the US - 50+ %

http://www.alcohol-and-drug-guide.com/index.html
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by excoachken July 16, 2009 8:10 AM EDT
Since there are many more carcinogens in pot than in regular tobacco and the smoke is intentionally held in the lungs for a much longer time by the user, you would have to be high to think that marijuana is not a stronger source of lung cancer. As for DUI, alcoholics are addicted to the drug physically and the number who would switch to pot's psychological addiction because they now could buy a more expensive substance (due to the inevitable government taxes and manufacturing standards), for a different high and do lung damage at the same time, would be miniscule. Do your homework!
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by formrusmcsgt July 16, 2009 8:17 AM EDT
The Canadian government found exactly the opposite to be true.

http://www.cihr-irsc.gc.ca/e/4628.html

You're the one who needs to do some homework before shooting off your yap about something which you obviously possess only opinion, not fact.
by stuart2020 July 16, 2009 9:07 AM EDT
Facts?? He does'nt need no stinkin' facts. He's a neo-dweeb.
by rsteeb July 19, 2009 8:49 PM EDT
Do YOUR homework. Look up the Tashkin study. Cannabis smoke prevents cancer. Deal with it.
by zonkzilla July 16, 2009 7:44 AM EDT
Let's look at this realistically.
If California would legalize ALL illegal drugs and also prostitution and do away with child protection laws, they could take in over 10 billion a year. Making steroid use legal for everyone including high school kids would probably bring in a billion by itself. Then they could tax the drug rehab companies who would be on every street corner.
Go for it, sell out California like it is a cheap street prostitute.
Poor pothead drug addicts, they will use any excuse to hook other people and this time the excuse is badly needed tax money.
But then again we all know that pot destroys your brain and makes you do stupid things so maybe the potheads just can't help it?
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by formrusmcsgt July 16, 2009 8:19 AM EDT
No one who smokes a joint is interested whether others do or not.

You should seek treatment for your paranoia.
by stuart2020 July 16, 2009 9:05 AM EDT
If pot makes one do stupid things then you're smoking way too much of it.
by kasado August 2, 2009 12:19 PM EDT
Sounds like a typical Repuglican. Use off subject scare tactics like the dangers of child abuse, prostitution (don't get me started on that) and really dangerous drugs to push their tighta$$ domineering agenda. Hell why not, they talked us into two 9 year wars and a depressed economy using the same kind of twisted logic.

Who left these monkeys in charge??
by aazippo2 July 16, 2009 7:42 AM EDT
What??? Pot is illegal? Since when???

RT
www.anonymize.tk
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by bunzzee1969 July 16, 2009 7:40 AM EDT
I would advocate legalization of pot on a limited scale..if you get into a accident while stoned..you are going to jail, just as you would for drinking alcohol and driving...yes, we should all be able to have a choice whether to smoke or not to smoke..I smoked pot for 20+ years..almost daily..but..I do believe there are health risks..the black crap that I coughed up..wasn't pretty...oh, I loved my "high times"..and this very well may be a change that is over due...but understand there will be consequences...and I hope that we all are not just looking at the "freedom to make a choice" part of this decision..there are many many aspects of this debate that haven't even been touched on...but I applaud California for leading the way..perhaps by their example, other states can see either what to or not to do..
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by formrusmcsgt July 16, 2009 7:55 AM EDT
I don't know what you were buying that caused you to cough up "black crap" during 20 years of use.

I've been using it for 40 years and never had such an occurance.

I think you bought oregano and couldn't tell the difference.
by jetranger7 July 16, 2009 5:28 AM EDT
Hres what most of you people DON'T get -even if they legalize it,,, for your use,,, it still will NOT be accepted in the work place to have people stoned,, and operating any kind of equipment,, there will NOT be an employer anywhere hire you if you test positive for THC content in your system,, not to mention how'd you like to be around somebody operating a piece of machinery or operating a piece of equipment Stoned- high as a kite,, and possibly run over you or injure you,,, just because they were stoned,, I don't think so,,, its 1 thing to toke maybe once or twice a year,, but then those that think they have to have it several times a day,, and theres the problem,, and they will come up with all kinds of lame duck excuses to try to justify their reasoning,,, ain't happinin !!!!
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by earthling76 July 17, 2009 12:56 PM EDT
My employer does not accept employees being drunk in the work place. Stands to reason that he wouldn't accept his employees being under the influence of any drug, legal or otherwise. Also, not all jobs require that you be sober in order to be successful. Rush Limbaugh kept on commentating high as a kite on oxy.
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