Lighting up the beneficial outcomes of a marijuana tax

Taxing marijuana is an advantage that needs to be taken

Citizens of Colorado age 21 or older legally purchased recreational marijuana for the first time, generating more than $1 million on opening day alone.

According to CNN, Colorado is expecting $67 million in revenue each year from the marijuana tax.

In order to improve educational facilities, school construction will make up $27.5 million of the tax, which is a very significant section of the funds. The remaining money will be spent on the upkeep and success of the marijuana business.

However, the United States is ranked 17th in the world for education, according to the Pearson Education firm.

According to Kids Count Data Center, 17 percent of all 18-24 year olds in the country were not in school, not working and did not have a degree past high school in 2011.

Education needs to be improved with excess tax revenue. Taxing marijuana is a perfect way to acquire the funds needed, because it affects a huge portion of the population in Colorado.

According to a study completed by Colorado State University April 24, 2013, it is estimated 12.4 percent of the Colorado population consumes marijuana regularly.

In addition, the study estimates a demand of 2,268,985 ounces of marijuana annually in the state alone.

Alaska, California, Maine, Nevada, Oregon, Rhode Island and Vermont are among the states close to the legalization of weed in the next few years, according to Rolling Stone magazine. Since the United States. is headed for the end of marijuana prohibition, we must capitalize on all benefits.

Marijuana tax burns buyers and misuses valuable funding

High taxation drives buyers to engage in unethical means

While Colorado and Washington are lighting the way for others in legalizing marijuana for recreational use, their current system of taxation should be revised to better serve the people.

As lawmakers essentially treat marijuana like alcohol or cigarettes, the tax imposed seems high, both literally and figuratively. Although this tax is meant for productive means, it harms consumers, a phenomenon that occurred in New York last year.

New York City, which raised taxes on cigarette cartons to $5.85 per pack earlier in 2013, saw more than 60 percent of sales come from smuggled or illegal vendors, according to the Tax Institute. This spike in substance smuggling, in which one truckload of cigarettes is worth at least $2 million, could permeate into Colorado and other marijuana friendly states should taxes increase too much.

Colorado politicians plan to use the projected $40 million to fund the creation of new schools. According to the U.S. Department of Education, Colorado spent an estimated $398 billion in 2013. Education is one of the largest sources of funding in the United States, and Colorado would benefit by using the taxed money in lacking areas, such as health care or infrastructure.

Proponents of this tax argue  it provides a safer product and benefits society as a whole, similar to a classic “sin tax.” However, the current system fails to call for effective government oversight on the production.

Colorado lawmakers should rethink the extent of marijuana taxation. Colorado and Washington must be careful of too much government involvement lest consumers turn to other sources.