Wednesday, July 22, 2009

Is Marijuana the Answer...........

In this May 20, 2009 photo, Erick Alvaro, left, delivers medical ...
In this photo, this man delivers medical marijuana from The Green Door dispensary to a man at his home in San Francisco. Since California became the first state to legalize the drug for medicinal use, the weed that the federal government puts in the same category as heroin and cocaine has become a major economic force.
In California, medical marijuana sales are already taxed, and some communities are looking for ways to get a bigger slice of the pot pie. Residents Oakland are currently voting in a mail-in special election that includes a measure which would make the city the first in the country to establish a new tax rate for medical marijuana businesses. If the measure passes, Oakland marijuana dispensaries, which are now charged at the general tax rate of $1.20 per $1,000 in receipts, would see that rate raised to $18 per $1,000.
Not surprisingly, the idea is getting traction in California, home to both the nation"s largest supply of domestically grown marijuana (worth a estimated $14 billion a year) and to the country"s biggest state budget deficit (more than $26 billion).
Even the most ardent marijuana advocates aren"t expecting nationwide legalization anytime soon. Instead, any action is likely to come on the state and local level. For now, all eyes are on cash-strapped California, where high taxes could take on an entirely new meaning.

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