In bid to blunt black market, California eyes marijuana tax cuts

In bid to blunt black market, California eyes marijuana tax cuts

Steve D’Angelo was prescient. As the era of legal recreational marijuana sales in California began just over a year ago, the East Bay medical marijuana maven expressed concerns that taxes on the newly legal industry were too high.

“It’s going to mean that a significant number of people, less affluent consumers, are going to turn to the lower prices of the underground market,” he told KPIX 5 on January 1, 2018, the day sales became legal in the state.

A year later, D’Angelo’s concerns have been borne out. The state had estimated that retail marijuana sales would exceed the $3 billion in 2017 sales, which came solely from medical marijuana outlets, but instead legal sales actually declined to $2.5 billion.

Click here to read the article by Phillip Smith on AlterNet:

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