LOS ANGELES, August 2, 2009

Pot Tax Has $1.4B Potential in California

Proponents, Including Medical Marijuana Users, Say Untaxed Marijuana Means Needed Revenue Is Going Up in Smoke

  • Play CBS Video Video Medical Marijuana Debacle

    It's estimated that 14 Billion dollars worth of marijuana is sold illegally in the state of California. However, making it legal would bring in approximately 1.4 billion dollars a year. John Blackstone reports.

  •  (CBS/AP)

(CBS)  There is talk in California of what you could call a radical idea for the cash-poor state to raise money. It's controversial, but proponents say the plan could smoke out more than a billion dollars for the state, as CBS News correspondent John Blackstone reports.

It is an unusual commercial: taxpayers demanding a new tax. It's an offer by marijuana users to help the state's battered budget.

"We're marijuana consumers. We want to pay our fair share."

It's estimated that $14 billion worth of marijuana is sold illegally in the state. Making it legal and taxing it at $50 dollars an ounce would bring in approximately $1.4 billion a year. Assemblyman Tom Ammiano has been pushing the idea.

"I thought it was high time - no pun intended - that this was on the table," he said.

As many see it, marijuana is already virtually legal in California where state law allows it for medical use.

At one Los Angeles dispensary, The Farmacy, the cannabis comes in buds so you can smoke it of course, but you don't have to. There's also cookies and candy bars, also drinks with cannabis as the active ingredient, and gelato - so you can take your medicine like ice cream or lollipops.

One dispensary gave out free pot to anyone with a valid prescription. The line was out the door.

While many doctors say marijuana has valid medical uses, like treating nausea in chemotherapy patients, critics say California's medical marijuana dispensaries sell the drug to almost anyone.

"That system is a sham," said Bernard Melekian of the California Police Chiefs Association. "98 percent of the people who are acquiring marijuana at these dispensaries do not appear to have the conditions for which the law was intended to apply."

At a dispensary in L.A., users claim a wide array of ailments - chronic neck pain, an ankle injury that required 10 screws and a metal plate, and so forth.

In Oakland, a patient named Charles says marijuana is good for his mental health. "It relieves my anxiety and allows me to cope," he said.

Users in Oakland now pay a special city tax on medical marijuana - a first in the state, but maybe not the last. Marijuana tax promoters say a lot of potential revenue is just going up in smoke.

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by collegedb8ter August 28, 2009 9:18 PM EDT
Gate-way Drug- here is the issue at hand as i see it; claiming that marijuanna has negative side effects is tan amount to an ad hoc argument; there is no good independent (and i mean scietifically, not by an "indepent" group) study to verify these assertions. almost all bodily damage is minimal and only temporary, and on par with normal daily activities that aren't illegal. as far as damage to your life this is where the ad hoc comes in, and it really is a matter of alternate causality, and more importantly of transperancy. i say tranparency because this debate is about how much you see, and the truth is that the only people that become statistics are the people who do something wrong and get caught. you only see the bad. such as when they call it a gateway drug, but that is because they only catch the people who take it to coke and heroin, but never the weekend warriors who are content with marijuana. You think it tears families apart, but what about all the ones who never seek help, because the family is fine with it. all the things you see on the tv commercials, first never happen, but are still just extreme examples. i went to a very good college, with very smart people, i knew hardly anyone who had never smoked marijuana (not because i hung out with stoners, i knew completely randomized people in classes), and in my hall, there was only about 4 people who didn't smoke marijuana at least once a week. I personally consume marijuana for chronic shoulder pain and I maintain a 3.8 GPA in College, I am on the debate team as well and in High School was one of the top 150 debaters in the country. What you have to realize when you look to the people who ruined thier lives and others is that there is no control study in that group, but when you have people who smoke weed and don't ruin thier lives you can't say "it ruins lives". those people were going to find a way to ruin thier lives.
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by collegedb8ter August 28, 2009 9:17 PM EDT
1) I would like to point out that speeding is the #1 contributing factor in all motor vehicle accidents.

2) Family Toll- Scapegoating... what about the million other destructive behaviors that people subject themselves to as a result of their circumstances? Some people deal with stress by eating alot, eating nothing, crawling inside of a bottle, self mutilation, abusing themselves or others. The individual's problems are not caused by marijuana, it is only a crutch, should we ban razor blades, alcohol, and all-you-can-eat buffets, just because people can use them to hurt themselves? No because a majority of the population are responsible.

3)Traffic Fatalities and work production- Any study done that supports a ban on marijuana that claims to be scientific is flawed. Pharmacologists cannot get a handle on it with their methods, and because they cannot see the reality of the non-material state of consciousness that users experience, they are forced to design experimental situations very far removed from the real world in order to get measurable effects. There are three conditions under which marijuana can be shown to impair general psychological performance in laboratory subjects. They are:
by giving it to people who have never had it before;
by giving people very high doses that they are not used to
(or giving it orally to people used to smoking it); and
by giving people very hard things to do, especially things that they have never had a chance to practice while under the influence of the drug.

Under any of these three conditions, pharmacologists can demonstrate that marijuana impairs performance. And if we look at the work being done by NIMH-funded researchers, all of it fulfills one or more of these conditions. In addition, the tests being used by these scientists are designed to look for impairments of functions that have nothing to do with why marijuana users put themselves in an altered state of consciousness. People who get high on marijuana do not spontaneously try to do arithmetic problems or test their fine coordination.

What pharmacologists cannot make sense of is that people who are high on marijuana cannot be shown, in objective terms, to be different from people who are not high. That is, if a marijuana user is allowed to smoke his usual doses and then to do things he has had a chance to practice while high, he does not appear to perform any differently from someone who is not high. Now, this pattern of users performing better than nonusers is a general phenomenon associated with all psychoactive drugs. For example, an alcoholic will vastly outperform a nondrinker on any test if the two are equally intoxicated; he has learned to compensate for the effects of the drug on his nervous system. But compensation can proceed only so far until it runs up against a ceiling imposed by the pharmacological action of the drug on lower brain centers. Again, since marijuana has no clinically significant action on lower brain centers, compensation can reach 100 percent with practice.

These considerations mean that there are no answers to questions like, What does marijuana do to driving ability? The only possible answer is, It depends. It depends on the person - whether he is a marijuana user, whether he has practiced driving while under the influence of marijuana. In speaking to legislative and medical groups, I have stated a personal reaction to this question in the form of the decision I would make if I were given the choice of riding with one of the following four drivers:
a person who had never smoked marijuana before and just had;
a marijuana smoker who had never driven while high and was just about to;
a high marijuana smoker who had practiced driving while high; and
a person with any amount of alcohol in him.

I would unhesitatingly take driver number three as the best possible risk. One may wonder how many drivers of types one and two are on our highways. Probably many. But there is some consolation in the fact that persons learning to do things under the influence of marijuana almost always are anxious about their performance and therefore tend to err on the side of overcaution.
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by sero5 August 16, 2009 8:23 PM EDT
Our national forests here in California are being razed by Mexican drug cartel thugs to grow marijuana, or I should say "medical" marijuana. How many bogus prescriptions for "medical" marijuana. In five years, another group of crackpot California doctors will claim that meth and cocaine can be safely snorted for medical ailments. Then, another voter proposition to legalize them. ..And talk about taxing meth and cocaine.
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by CaliforniaCannabisIncCEO August 7, 2009 3:20 PM EDT
As a Cannabis ("Marijuana" as you people know it) professional I can tell you that this is a wolf in sheeps clothes. Cannabis is already subject to taxation if sold per existing California law. I have a state sellers permit, and an IRS EIN, plenty of taxes are already paid. What the intiative authored by Richard Lee, and AB 390 offer is just new ways for cannabis users (for whatever reason) to be prosecuted still. As it stands the penalty for possesion of an ounce or less of Cannabis in California if you are not a medical patient is a $100 fine. Thats less than most speeding tickets, the fine for driving while talking on your cellphone is higher.

This is being pushed by special interests who want to be able to setup and control a monopoly. Welcome the the United States of Corporate America.

CBS why don't you cover the REAL STORY
Production, Analysis, & Distribution of Cannabis & Marijuana Cigarettes
Solicitation Number: N01DA-10-7773
Agency: Department of Health and Human Services
Office: National Institutes of Health
Location: National Institute on Drug Abuse
https://www.fbo.gov/index?s=opportunity&mode=form&id=2f734e46a74d477e37ac07798c08a3ae&tab=core&tabmode=list&cck=1&au=&ck=
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by AB390 August 5, 2009 12:01 AM EDT
Tell your legislators in Sacramento to legalize marijuana. Visit <a href="http://yes390.org"> <b> yes390.org </b> </a>
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by hionareef August 4, 2009 11:22 PM EDT
Keep it illegal, just decriminalize it.

Procuring and enjoying pot has forced me look at the flip side to a lot standard viewpoints. I don't think most people will be able to handle that. I would really hate to see my sacrament used and abused by Joe Sixpack and Suzy Soccormom.
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by landy1986 August 4, 2009 8:22 PM EDT
rennin1 is an idiot saying 98% of people are going to go to crack or any other thing from smoking pot. why not make alchohal elegal people die from it all the time how many people die from pot?0 .legalizing pot is very smart for helping the economy and makeing more money. i dont get these idiots like rennin
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by presjfk August 4, 2009 4:53 PM EDT
$1.4 bill is a drop in the bucket -or bong if you prefer for California. The only solution for our governments, Federal, State and local is to cut spending and not be allowed to deficit spend. Its a lesson many individuals and families are learning across the country. It should start with our government.,
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by kangaroolipstick August 4, 2009 5:20 PM EDT
True that. Legalizing and taxing the sale of Marijuana would only bring more revenue for the state to be spent poorly. The government would probably use this extra money to give themselves a raise for coming up with this idea of taxing marijuana.
by kangaroolipstick August 4, 2009 4:21 PM EDT
Oh and I forgot. You can brew your own beer at home just in case you didn't know. You can save in all those taxes. Good luck having it come out not tasting like Carbonated Soy Sauce. If you are against legalizing MJ, keep going to church and praying about it and that your kids are perfect and they don't smoke or try Marijuana. Maybe you can pay the church more money to have a prayer chain started on the subject since we are going to hell with a joint in our pocket. Maybe you should tell your kids that you got to drunk and forgot to strap a rubber on your dads wang and that is why you are here today. Maybe if you lit up that joint instead you would of been laughing to hard and been content sitting on the couch watching the Discovery channel's episode of Meerkat Manor to make that bad decision that the dude sitting next to you poring you another shot of Vodka love's you and you should sleep with him, them squirt out this kid that you didn't even want let alone afford to have in the first place, then they grow up to be $hit bag's with no personal guidance from a parent because they are out getting loaded at the bar not paying any attention to them and letting school and proper guidance go out the window. Bad parenting is a gateway drug.
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by rennin1 August 3, 2009 8:17 PM EDT
To thejaypee:
You seem to suggest that if marijuana is to remain illegal, then tobacco and alcohol should be made illegal as well. But voters in every state in the US have uniformly decided that tobacco and alcohol should be legal and that marijuana should not. Perhaps your argument for legalizing pot is with the entire US, not just me. Let me know how that works out for you. Also, where did you get the idea that people are not free in this country? I believe the US is the freest country on the planet and that you are trying to make a bogus case that people here are not free. Well, JP, if you don't like living here in the US, then you can always try to find some other country to live in that is freer to live in than this country is. As for waiting for my generation to die off, where did you get the idea that I am any older than you are?
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by kangaroolipstick August 4, 2009 3:51 PM EDT
As much as I dream this happening, I believe it will still be awhile tell we see MJ legalized. The pharma companies will fight this tell the bitter end. The sale of legal drugs: Xanex, Vicodin, Zoloft and all that crap that will kill us humans will decline. As for people who say, "If it is legal you can just grow it so how would the state make money?" I have my medical card, I can grow 12 plants, but I only choose to grow one or two for personal, and not all the time because it is a pain in the A$$. You have to make sure the lights are on timers, don't run out of water, pump doesn't brake, over fertilizing and frying your plants to death(done this one), under watering, etc. People don't have the time for this $hit!!! To think that people will just grow and not buy it anymore is the dumbest come back against it. You can grow your own corn A$$hole.. I don't see you doing that!! Or you can raise an F'ing cow in your backyard also and kill it when you are hungry. People pay for things that make life simpler. Buying the GOD given weed at the local store will be a hit!!! Pack of Marlboro Marijuana Lights Please!!!!!!!!!!
by sugar_maple August 3, 2009 6:35 PM EDT
Legalize. Not only will legalization control marijuana, unlike prohibition, it will regulate it to a controlled substance rather than a substance that has no controls and could be laden with chemicals and pesticides.

People who decide to grow their own will find out it is the way rather than kneeling for the corporations to take over. This is what is happening now.
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by spirit411 August 3, 2009 12:09 PM EDT
People, please, did prohibition stop drinking? did it stop addictive behavior before or after... NO legal or illegal those with that predisposed nature to use more than they should will always be there, we do not stop it either way, but the lawyers, the politicians they make a fortune, the wardens as well.
and those pills so many take to dela with the stresses of life that WILL cause one thing or another would likely take less, get the tobaccoo farmers back in the game, put people to work in the fields again and let us be.
askany resonable cop if he would rather pull over a drunk or a pot head, he is going to say the pot head, you DO NOT get violent on pot.
you still have laws saying driving under the influence and keep them they are valuable but those who act irresponsibly always will, now get the government once more out of my living room and deal with the mess they built and we allowed them too!
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by DaVicar5 August 3, 2009 11:29 AM EDT
You dopers are funny.
Just as funny as you were forty years ago, when we used to call you hippies.
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by AttentionDeficit August 3, 2009 12:08 PM EDT
DaVicar: The arguments put forth for continued prohibition of pot are as empty now as they were 40 years ago, when the drunk rednecks would make fun of those so-called hippies while drinking themselves into a stupor.
by gunownerdan August 3, 2009 12:28 PM EDT
"YOU FUNNY HIPPY DOPERS"

Is that all you got, insults and stereotypes?
Typical.
by gunownerdan August 3, 2009 9:46 AM EDT
Estimated dollars PER YEAR that can be saved and earned from legalizing and taxing marijuana in the U.S. = $14,000,000,000+!!!
Reply to this comment
by gunownerdan August 3, 2009 9:44 AM EDT
Marijuana is America's #1 cash crop today and it has been illegal for over 70 years.
It is now stronger and easier to get than ever before while drug dealers and drug gangs are richer and more powerful than ever before!
Anyone who think marijuana prohibition can work is simply ignorant of the facts.
It's just as harmful and destructive as alcohol prohibition was in the 1920's.
Please educate yourself....

Law Enforcement Against Prohibition
www.LEAP.cc

Marijuana Policy Project
www.MPP.org
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by pamjeannine August 3, 2009 8:50 AM EDT
I think leagalizing pot would be a great way for the U.S. to make money. I also think that pot is better than drinking alcohol on pot you can actually maintain a vehicle. But on a medical note i sometimes get really stressed out my nerves get bad and i almost lose my mind and others who have problems like these take pills like xanax, pain pills and other off the wall crap that these days people are abusing or literally dying from even peoples children are dying from taking pills of which they stole from their parents i don't ever want to take anything like that. Where is there an actual case of someone oding on pot? Well if pot did become legal there should be a law like when u buy cigs u have to be 18 or alcohol 21 there's ways to do it right also i feel that the crime rate across the nation would lower and they can focus on catching the ones selling things like cocaine, herion, and other deadly drugs.
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by Gumshrud August 3, 2009 4:38 AM EDT
Of course the police are going to hate this legalization move. After all, it is their cash cow--the failed Prohibition of Cannabis and the War on it.
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by tmittelstaed August 3, 2009 4:05 AM EDT
Do you live in CA? No? Then Shut Up. You have nothing to say about it. This is between CA population and their politicians.
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by ibsteve2u August 3, 2009 3:59 AM EDT
lollll...wheeeee....reading the comments rather leads you to believe that there are some who have a vested interest in NOT legalizing marijuana.

One could speculate on their employment...

But, frankly, I expect Big Pharma to put up the stiffest resistance. They legalize marijuana, and an awful lot of demand for everything from ibuprofen to zoloft is going to...

Well, go up in smoke.
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by guest173 August 3, 2009 2:50 AM EDT
I highly doubt marijuana was proven to be an anti-cancer drug. fruits and vegetables are good enough and not eaten enough. I smoked marijuana for years and I am glad to have stopped that habit now that I came to my senses. it gave me and others I knew a cough we couldn't get rid of for years (til I quit), I am sure if I kept it up forever I would die young just like I saw others, men die in their 50s from heart attacks, I am sure smoking mj did not help them. it also contributes to laziness which could be why the men I knew never bothered to be good parents or to do anything healthy to prolong their lives
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by guest173 August 3, 2009 2:53 AM EDT
pardon, I mean men and women both, I knew a grandmother who smokes and teaches her kids to be dealers just like her, who I have reported
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