California's legal weed profits going up in smoke
CBS News,
by
Staff
Original Article
Posted By: NorthernDog,
10/25/2019 7:16:54 PM
Legal marijuana in California as a business was supposed to be a no-brainer. How could it not be profitable in a liberal state pushing 40 million residents where some of the best weed in the world has been grown for decades? But nearly three years after Proposition 64, the law legalizing the adult use of the drug, was passed, California cannabis producers are not seeing the windfalls predicted. They tell Sharyn Alfonsi that regulations and a robust black market are cutting into legal pot profits. "The regulated market has been a fraction of what everybody expected it to be," says
The unintended consequences of liberalism strike again. Ha, ha, ha, ha, ha, ha.
18 people like this.
Reply 2 - Posted by:
MrDeplorable 10/25/2019 7:35:33 PM (No. 217601)
But even though those holier-than-thou communities can feel smug about banning brick-and-mortar marijuana DISPENSARIES, the state of California has ruled that mobile marijuana DELIVERY SERVICES cannot be barred from using PUBLIC ROADS, which means the communities actually do have dispensaries from which they cannot derive any licensing fees or taxes.
3 people like this.
Reply 3 - Posted by:
RuckusTom 10/25/2019 7:36:37 PM (No. 217603)
Uncle Sugar wants his cut. A license to sell it, state employees to issue the licenses, tax stamps, increased policing, inspectors, certified trainers for the inspectors, fees, fines ... all performed by (additional) employees of the state. Since it's mostly an all cash business in many places, the weed stores themselves have to have very high security. That's a lot of overhead.
Those guys in the cartels pay peons a few dollars to grow, harvest and package it. From there it's on a truck or carried on the back of a human mule and it's across the border. Not much overhead at all.
4 people like this.
Strange that these so called environmentalist never consider the amount of water that is needed to grow pot in a state that regularly suffers from droughts. They also never consider the impact that growing weed may have on growing food which is much more important to our well being. It seems Californians are already stupid enough, you would think that the product that makes you even dumber wouldn't be needed.
8 people like this.
Reply 5 - Posted by:
GoodDeal 10/25/2019 8:09:56 PM (No. 217616)
The black market is and always be where the real money is. Guerilla growers and their loyal customers make bank tax free and that’s the lure. I have known guys with small time hydroponic set ups that crank out 10 pounds of finish product every 3-4 months. Been doing it for years and never been busted. Do the math.
5 people like this.
Reply 6 - Posted by:
anniebc 10/25/2019 8:36:59 PM (No. 217627)
All these clowns have to be stupid to believe legalizing mary jane was all about making them rich. I sure hope some of them will learn a good lesson and get free from the foolishness of leftism.
4 people like this.
Reply 7 - Posted by:
heartsurgeon 10/25/2019 9:06:58 PM (No. 217646)
When pot was illegal, the state looked the other way and did not use law enforcement to crack down on weed growers.
NOW that's its legal, the State demands its cut of the action. I anticipate law enforcement will be cracking heads and locking people up over pot tax evasion.
Funny how that works.
3 people like this.
Reply 8 - Posted by:
seamusm 10/25/2019 9:41:55 PM (No. 217668)
So this guy spends $50,000 to grow 45 plants. You have got to be kiddiing. He expected a return on a $50K investment with 45 plants. That is some freaking over-priced doodoo.
2 people like this.
Reply 9 - Posted by:
red1066 10/25/2019 10:06:59 PM (No. 217682)
Considering the cost of living in California, it's not surprising that people don't have the extra money to buy pot. However, living in California and having the brain dead run the state, pot may be the needed just for one's sanity.
2 people like this.
Reply 10 - Posted by:
padiva 10/25/2019 10:21:37 PM (No. 217690)
What's next? Gov't subsidies to these growers?
2 people like this.
Reply 11 - Posted by:
zephyrgirl 10/25/2019 10:47:50 PM (No. 217700)
Cry me a river.
2 people like this.
Reply 12 - Posted by:
JimBob 10/25/2019 11:13:29 PM (No. 217712)
All these 'masterminds' never saw this coming?
Boo Hoo Hoo..... My Give-A-Dam's Busted.
1 person likes this.
Reply 13 - Posted by:
Trigger2 10/26/2019 1:34:58 AM (No. 217780)
Not surprising. All of deplorables knew this would happen when you heard of words "taxes". Not miniscule taxes, but humongous ones.
1 person likes this.
The first time I bought some here in CA I was shocked at the tax rate. Between sales tax and a "cultivation tax", it was 25% tax. I can totally see why people are using the black market.
0 people like this.
Reply 15 - Posted by:
franq 10/26/2019 7:20:51 AM (No. 217897)
Only one solution - raise the taxes on it and pass more laws! And, please people, don't smoke cigarettes or vape. It's bad for you.
0 people like this.
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Black market dealers bypass thousands of dollars in fees and cumbersome regulations. Should not be a surprise they are thriving.