Will Taxes be Too High on Legal Marijuana in California?

Getty According to a new report from the global credit ratings firm Fitch Ratings, taxes on legal adult-use marijuana in some parts of California could equal or even exceed 45 percent. “High tax rates raise prices in legal markets, reinforcing the price advantage of black markets,” the firm said in the report. “California’s black markets for cannabis were well established long before its voters legalized cannabis in November 2016 and are expected to dominate post-legalization production.” In other words, if taxes raise the price of legal cannabis too much, most people will stick with their illegal dealers. Licenses for...

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