Currently, Colorado has a 10% special state sales tax and a 15% excise tax on pot. Do you believe Colorado would receive more revenue from pot, if they lowered or increased these taxes.
Demand for pot, because it is addictive, is likely inelastic, meaning that increased taxation won't influence quantity demanded too much.
Probably lowered. At this point people are probably still getting it the old way to avoid taxes.
Neither - it seems about right
I wish I could've put that option.
The tax is supposed to work as a deterrent as well as a source of revenue. Just like the cigarette tax.
Wouldn't it deter people more, if pot was just illegal?
Prohibition didn't work in the 20s people actually drank more.
I hate cigarettes but I won't take away the freedom from ppl to be allowed to buy them.