Tom Amiano, a Democratic representative from California, has proposed that the state address its massive debt of $42 billion through the legal sale and taxation of marijuana.
He suggests the legalization of marijuana ‘because it would allow for a monthly collection of at least one billion dollars from various fees,’ agencies reported. He noted that the calculation is simple as the costs of trials and incarceration in the fight against cannabis smuggling cost California $200 million in 2007, and taxing marijuana could yield good profits for the state, where wine and cigarettes are already taxed.
According to the Los Angeles Times, marijuana cultivation in California generates $14 billion annually, which is three times more than vegetable production ($5.7 billion per year) and seven times more than wine production ($2.6 billion). Therefore, the state could earn a billion dollars each year from this. Amiano proposes that California producers and distributors who obtain a license to sell marijuana to adults over 21 years old pay a fee of $50 per ounce (35.27 grams). Each ‘joint’ would thus be taxed at one dollar. The Democratic representative’s proposal has already been supported by the National Organization for the Reform of Marijuana Laws (NORML). (Tanjug)
