November 16, 2020

Marketplace: Could the success of ballot measures to legalize marijuana add pressure for federal legalization?

media mention

Carl Davis, research director at the Institute on Taxation and Economic Policy, studies states’ cannabis tax structures and he said one problem is that most states’ excise tax is based on price not weight.

“In the states that have built their system around prices, if you see a big price cut happen, there’s going to be an automatic state tax cut as well,” Davis said. “And so not only are you losing revenue, you’re actually exacerbating any price decline.” Read more