Strict rules and government intervention ins states that have already legalized cannabis for both medical and recreational purposes are typically restricting the industry. As a result, the black market is still selling marijuana and thriving; this was not the intention that lawmakers had. By putting a ton of rules in the cannabis industry, in addition to large taxes and stress upon both cultivators and retail outlets, governments seem to be attempting to please cannabis opponents by being vague and at the same time making things more difficult.
As a result, these strenuous regulations on the profitable legal cannabis industry are allowing illegal drug dealer to continue doing what they do best – sell marijuana on the black market. In Washington State, the Liquor and Cannabis Board recently stated that the marijuana market demographics showed that illegal cannabis sales, at twenty-eight percent, are very close to legal recreational sales, at thirty-five percent, and legal medical marijuana sales, at thirty-seven percent. Also, people believe that a number of sales on the black market are extremely underestimated.
Evidently, people are ready to risk incarceration by buying and selling products on the black market to avoid regulations imposed by the state, including who can consume as well as taxes. On the bright side, Washington lawmakers revealed that they are supporting a “pathway for legal marijuana delivery.” In fact, Washington Senator Christopher Hurst added that he wanted to lower taxes on cannabis sales from thirty-seven percent to twenty-five percent.
“The criminals love the tax rate being high, because they don’t pay it, and it makes it so the legal people can’t compete with them,” Hurst said to Reason.com, which highlighted that the proposal stopped passing at the House Finance Committee; states are having issues with taxes that are leaving both providers and consumers discouraged.
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