Current Event Journal 2
The article, California slapping high taxes on marijuana, causing sticker shock for some,
by Associated Press, discusses new state taxes on both marijuana, especially on recreational
marijuana, coming January first of next year. The article provided examples of how taxes will
shift the cost of a bag of marijuana bringing it from $35, currently, to $50 to $60. Starting
January 1st, taxes on all cannabis product will be levied 15%. This percentage is separate from
local government tax that cities and counties are welcomed to add. The article further talks about
how high taxes will cause the black market for illegal purchases of weed to thrive.
Deadweight loss was the main theme of chapter eight, and I think the taxation of
marijuana describes how it would cause deadweight loss in the new industry. Deadweight by
