jord wrote:
Macbeth wrote:
jord wrote:
Yes. The money saved from cultivating thousands of plants on a large scale will just even out with taxes.
I'm not too fussed either way but its pretty idiotic for a government to not salvage what money they can in a recession.
Did the government announce what they would tax marijuana farms if it was ever legalized or are you just assuming the taxes would be enough to even things out?
jord wrote:
Its not that simple anyway, many cultivators just do it on the side for extra money.
And buying pot at a higher price from someone who grows it in their basement makes more sense then buying some cheaply from the local store?
I'm assuming the taxes would be enough on the basis that for a government to overturn and age old, semi controversial law and adopt a new policy to drugs they'd only do so for a good amount of revenue.
Regarding your last statement, no it wouldn't. Obviously the illegal growers would reduce their price and thus their profits, but they could still turn a half decent profit on the side I bet.
The money saved from not fighting the war on drugs is incentive enough not to hit pot with super heavy taxes. And even if the taxes were high, like tobacco, a person growing it in their basement still could not compete.
When you reduce your prices to turn a higher profit, you make the bet that you could make up for the lose revenue by increasing the amount of sales. Increasing sales would require more time, effort, and product to do. A single person wouldn't be able to produce on the scale a farmer would and couldn't win a price war.
There is just no way to compete with corporate farming sorry.