Ashton Deroy writes: Let us call the regulated Marijuana market what it is. A gigantic failure! It is true, the government took a fragile market & then taxed it making the vulnerable market worse off. Now the only people I know who buy regulated cannabis are high earning people who trade convenience for cost. One area where I see significant room for improvement as a consumer are in the Medical cannabis products, which if I can afford them are the option I would wish to use over black market. However, we need to stop taxation of medicine. We are turning desperate people to the illegal option and risking an approach to a public health epidemic. With urgency I urge public officials to stop taxing medical marijuana products
Here are 3 reasons we should remove taxation from medical cannabis products:
- Increase consumption – Taxation is a method to slow down consumption. That is basic economics. While I still think there is an opportunity to apply a tax on high THC recreational cannabis. I think we need to think more critically about why medical patients need Cannabis with high THC content. The taxation is directly why people are going to places like Tyendinega and accessing the illegal market over ordering regulated cannabis products.
- Eliminate black market medical cannabis providers – Here is something people are not considering. Many of the dispensaries use branding, personal sales & promotional strategies to attract medical cannabis users. Medical consumers buy cannabis more frequently & spend more money. This is really bad to have these patients relying on black market cannabis because we don’t know enough about how this cannabis is grown & if it is safe? Personally I know none of it is greenhouse grown or factory processed which is the main safe strategy for growing clean & healthy to consume cannabis by government standards. We should not adapt a strategy of government intervention to shut down reservation dispensaries. We should be forced to try to make the legal market more appealing through competition because otherwise this industry only benefits people with investment & not the end consumer.
- Decrease resistance to the regulated market – There is a straight up resistance to the legal market for cannabis. In Toronto I recall the illegal Cannabis dispensaries used to encourage their customers to oppose the legal market & support free-market practices. The problem here is that this is directly what puts the legal market under attack! One of the rival blogs https://endracebasedlaw.ca/ thinks the answer is just to shut down all of the illegal dispensaries existing on the Native reservations. However, I am opposed to that. I think this is why people are equating the cannabis market interference to negative aspects of Tyrannical Socialism. Instead if you remove the taxes you make medical products more appealing and you gain consumers who otherwise would only buy illegal products. Undercutting the competition is the Wal-Mart way. Arresting the competition is the Tyrannical Socialist way.
Not a radical idea, in fact this has been adopted in places in Canada where they are struggling to eliminate the black market.
- New Brunswick, + 0%of the base or dutiable amount;
- Prince Edward Island, + 0%of the base or dutiable amount;
According to… https://wolterskluwer.ca/blog/taxation-cannabis-canada/
Many Canadians consider the legal cannabis market a pure example of government stupidity. Since legal cannabis was introduced to Canadians there have been supply shortages, overly high product costs & unreasonable taxation. To improve this we must first look at the Medical cannabis market, specifically with how we handle taxation in that market. I think we should consider removing tax from medical cannabis products to improve accessibility, strengthen the market & reduce the risk to public health.
Mancell, Cameron. “Taxation of Cannabis in Canada.” Wolters Kluwer , 22 Nov. 2018, https://wolterskluwer.ca/blog/taxation-cannabis-canada/.
Cain, Patrick. “Cannabis Taxes Brought in $186 Million in Five and a Half Months.” Global News, 19 June 2019, https://globalnews.ca/news/5403579/cannabis-taxes-brought-in-186-million-in-five-and-a-half-months/.