Canada raising the Price on Medicinal Marijuana on Average 159%

Posted by PITHOCRATES - December 15th, 2012

Week in Review

Criminals like high state cigarette taxes.  For it makes for a lucrative business selling cigarettes in a high-tax state that were purchased purchased in a low-tax state.  The higher the tax the bigger the profits in smuggling cigarettes across state borders.  And best of all if you get caught the penalty isn’t that bad.  For cigarettes are legal.  Which causes a problem in those high-tax states.  For when they raise the tax rates drug runners stop running drugs across the border.  And turn to cigarettes.  As they did in Canada during the Nineties.  Illegal drug trafficking went down.  Cigarette smuggling went up.  And tax revenues fell.

And now the Canadians are trying to raise tax revenue again.  Only with a different legal product (see Medicinal marijuana prices in Canada to rise by The Canadian Press posted 12/15/2012 on CBC News).

Those who use marijuana for medicinal purposes in Canada may want to reach for the aspirin when they learn about a pending price increase.

Proposed regulations posted by Health Canada say the price of medical marijuana should rise to $8.80 cents a gram —currently it ranges from $1.80 to $5 a gram…

Currently, those who wish to use medical marijuana must apply for a permit from the government in order to either grow it themselves or buy it from a single government grower.

This was one of the arguments for decriminalizing marijuana.  You could tax it.  And flood the state coffers with new tax revenue.  Or you can do it one better.  Like the Canadians.  Who don’t just tax it.  But they sell it.  And being the only grower in Canada they can charge whatever they want.  Which they appear to be doing.  Raising the price on average 159%.

Hmmm.  A high price?  A legal product?   And a nearby border?  Sounds familiar.  Something tells me that they are not going to collect what they think they are with these price hikes.

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