Legalising cannabis 'could stop recession'

12 Oct 2009, 2:14 pm   -   Source: AP/Sky News
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Cannabis advocates in Oakland, California say the financially troubled state could increase its cash flow by taxing medical marijuana.

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Cannabis advocates in Oakland, California say the financially troubled state could increase its cash flow by taxing medical marijuana.

In July, Oakland City Council voted overwhelmingly to tax the city's medical marijuana dispensaries to increase its profits.

At the time of the vote the city faced an $US83 million budget shortfall, and expected the marijuana tax to raise $315,000, according to the report.

The city auditor projected the tax would ring up to $17.5 million in sales.

Richard Lee, Head of Oaksterdam University, the US's first cannabis college, told Sky News the rest of California could follow suit.

He estimates the Californian cannabis industry is worth around "$15 billion, so just the 10-percent sales tax alone would be one and a half billion dollars."

However Special Agent Bob Cook from the Bureau of Narcotic Enforcement doubts the tax collected would offset the damage he thinks may be caused from the use of the drug.

He points to people who are now ill from smoking tobacco, now in hospital.

"We're not making enough money now to care for all these people who are in hospitals who have developed emphysema, lung disease, throat cancer, circulation issues..who's going to pay for all of that?" Cook told Sky News.

Advocates of marijuana in the state of California have started their push to get a marijuana legalisation measure on California's 2010 ballot.

Supporters of the Tax Cannabis 2010 campaign need nearly 434,000 signatures to make the November 2010 ballot.

Under the proposal, adults 21 and older could legally possess up to an ounce of pot.

Homeowners could grow limited amounts, and local governments would decide whether to allow pot sales.

Supporters argue taxes levied on marijuana sales could help strapped cities weather revenue shortfalls caused by the recession and California's budget crisis.

 

 

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Not Fair

Damn - from queenstown tasmania, 7 months ago

Damn Australia why cant we be as open to legalization. Hey i know enough people in my town that say yes i know of hundreds of people in forums that say yes legalise the weed but our government just wont give us a choice of letting us the people decide whether a drug that supposively the majority of people in australia have tried at least once in their life. Damn we life in a old persons paradise....by old i mean we follow what other countrys do because we are a young country.

LeGaLiSe

Johny McPotsmoker - from AUSTRALIA, 1 year

Man I just love smoking weed! and after hearing and reading all the pro's of lagalising it i think WHY THE F**K NOT!!. More money for the government, which is what they keep crying about, and makes alot of people happy, again this is what the government wants. I agree with all legalisation claims =D

tax tomatoes

jules the free human - from brisbane, 2 years ago

when you read / hear , MARIJUANA ,, substitute it for the word TOMATOES ,, then get another clear look at the situation. ,, we should all be able to grow our own if we want to .. or if you'renot a garden type, buy your quality fresh "TOMATOES" at the local Grocer. SIMPLE ,, isn't it ?.. Marijuana is a plant,, grow it , dry it , use it. Tobacco & Alcohol come with high processing costs ,,heavily taxed & THEY KILL PEOPLE... THAT's the REAL DIFFERENCE. have a PROHIBITION on TOMATOES !

Good Luck

Ann - from Perth, 2 years ago

Good luck to them, I hope that it passes, many have already said what I would say, I think it would be a positive move, I think Bob is just worried about his job ? he is wondering what he is going to do if he can't go out and bust some darn hippy smoking weed....

Pot

Stuart - from Canberra, 3 years ago

Dont care wheather its legal or not.. the choice is ours.. You cant make a living organism, illegal..

Less health problems not more

Marie - from Australia, 3 years ago

I cant understand what this Cook guy is on about. Legalisation will not increase the total number of pot smokers (people who don't smoke it now probabli never will, legal or not) so why does he think that adding a tax will cause all these extra health problems? If anything the negative effects experienced by pot smokers because of growth hormones and other crap that criminals put in the pot to make it heavier will be reduced as a result of regulation by the TGA.

Sooner or later people ...

pete - from SA, 3 years ago

It will happen, so why not cut back on wasted cash (no pun intended) and do it sooner? Oh that's right - because some self-righteous, ignorant fools don't want to "send the wrong message". I don't know what 'message' these people think they're 'sending' but I'm certain of one thing - no one's listening.

MY choice.

Matt - from Melbourne, 3 years ago

Cannabis legalization WILL happen in the US in the coming years. More and more states are signing up to medical marijuana laws, its only a matter of time. When Australian law makers start seeing the massive tax savings by taking Cannabis out of the equation of the War on Drugs, I believe we will do the same. Cannabis criminalization is the epitome of hypocrisy and makes absolutely no sense whatsoever.

Careful what you wish for fellow potheads

Socratic pothead - from High up in the clouds of Melbourne, 3 years ago

Careful what you ask for. Once it is legallised, it will be taxed which will make it a criminal offence against the Commonwealth with severe penalties. The tax rate will be increased over time - justified the same way tobacco is. You will not be able to grow it - ever. The you can never have clean, organic pot. It will be a just another infringment on your civil/human rights. Don't believe the hype! Have a smoke and think about it....

My kids, my choice

Cathy - from Ca, 3 years ago

The government can lie about whatever it wants, we have brains in our household, 2 parents both with their masters and we think for ourselves. Our children, both of them are taught that marijuana is the safest mind altering substance their is, and that it is FAR safer than alcohol. If our kids are going to try anything, we would much rather it be the least harmful, you do the math and tell me who is trying to fool who. Related deaths per year Tobacco 400,000 Alcohol 200,00 Marijuana 0

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