California pot companies warn of impending
industry collapse
Associated Press,
by
Michael R. Blood
Original Article
Posted By: NorthernDog,
12/18/2021 9:56:48 AM
LOS ANGELES -- Leading California cannabis companies warned Gov. Gavin Newsom on Friday that the state’s legal industry was on the verge of collapse and needed immediate tax cuts and a rapid expansion of retail outlets to steady the shaky marketplace. The letter signed by more than two dozen executives, industry officials and legalization advocates followed years of complaints that the heavily taxed and regulated industry was unable to compete with the widespread illegal economy, where consumer prices are far lower and sales are double or triple the legal business. Four years after broad legal sales began, “our industry is
Reply 1 - Posted by:
kreeger 12/18/2021 10:09:05 AM (No. 1010916)
My heart bleeds for them.
15 people like this.
Reply 2 - Posted by:
LC Chihuahua 12/18/2021 10:09:44 AM (No. 1010917)
California legalized pot so they could tax it. Apparently pot consumers watch what they spend. It's not a stretch of the imagination that pot consumers aren't exactly rolling in money. They go where it is cheaper.
The state of California will milk their pot industry for all they can get before it goes out of business, but maybe they will subsidize it with taxpayer dollars (if they aren't already).
16 people like this.
Curious to how many of these people didn't mind taxes when it was someone else's business? Now that the taxes hit them all of a sudden taxes are bad. I could be wrong but, i don't think so.
20 people like this.
Reply 4 - Posted by:
WhamDBambam 12/18/2021 10:10:42 AM (No. 1010920)
Leave it to a place like modern California to screw up a monopoly on selling pot.
15 people like this.
Reply 5 - Posted by:
Northcross 12/18/2021 10:12:43 AM (No. 1010925)
This may be the saddest economic news of the year, but I'm sure California can force taxpayers to subsidize the pot merchants.
11 people like this.
Reply 6 - Posted by:
Knotwyrkin 12/18/2021 10:13:29 AM (No. 1010926)
Great, millions of stoners hanging on the taxpayer's teats.
8 people like this.
Reply 7 - Posted by:
Roscoelewis 12/18/2021 10:26:50 AM (No. 1010951)
If they can't make a profit legally, they will just go underground, and things will be right back where they started.
17 people like this.
Reply 8 - Posted by:
HPmatt 12/18/2021 10:48:24 AM (No. 1010979)
Looks like their industry is going....Up In Smoke.....
Let it go back to what it was originally, dudes making some cash in college...
8 people like this.
Reply 9 - Posted by:
Highlander 12/18/2021 10:49:21 AM (No. 1010981)
People here are allowed to grow their own backyard pot. The limit is 6 or 12 plants, not sure. I’m sure that cuts into the market
4 people like this.
Reply 10 - Posted by:
DVC 12/18/2021 11:05:06 AM (No. 1011005)
Well, I certainly hope that they lose tons of money, lots of clients and get wiped out financially. Couldn't happen to a more evil, destructive, horrible bunch of people.
8 people like this.
Reply 11 - Posted by:
Birddog 12/18/2021 11:13:23 AM (No. 1011019)
Gee...they stopped enforcing the laws on the illegal growers/sellers, stop arresting even street level dealers...don't arrest the gangs that constantly rob the "Dispensaries". Only "Govt" would assume that THEY could move into Mafia Businesses, make Mafia level monies, without "protecting" those cashcow "clients".
Lotto is just the Numbers Racket, would "Schools" get any money at all if Govt let street corner Numbers groups operate?
Govt "licenses" Casino/Table games, and Slots. Would they make a dime from it is every bar and storefront had a backroom game? Dice on every street corner, every alleyway?
Wine Booze and Beer...would govt. make a dime if they allowed unlicensed, un-inspected, untaxed, stills and cross border runners to freely operate?
Now they have jumped into the "Dope" business, first with weed, but also with "Shooting Galleries, Opium dens", did no one point out to them that the Mob only makes bank on that stuff because they also have the "Protection" rackets, their OWN Cops.
Not only has Govt defunded, defanged, derided their own existing Cops, they are trying to make it illegal for ANYONE to defend themselves, their businesses, even the schools from the street mobs.
PS: School Loans? Loansharking. But, once Govt took it over, monopolized the entire industry, raised the wages/costs people needed to borrow through their EDU "partners", they are now saying "I won't make you pay it back"
4 people like this.
Reply 12 - Posted by:
Blue-Z-Anna 12/18/2021 11:15:04 AM (No. 1011024)
It seems as though taxes are such a buzz kill.
The crazy democrats can't even sell pot successfully.
And yet that does not stop them from wanting to control every detail of your life.
7 people like this.
Reply 13 - Posted by:
Birddog 12/18/2021 11:17:55 AM (No. 1011029)
They are also now in the "Human Trafficking" Biz...complete with "LaborPools", planeloads delivered upon demand to their "Affiliates"
2 people like this.
Reply 14 - Posted by:
JunkYardDog 12/18/2021 11:21:31 AM (No. 1011035)
CA is too greedy to be a successful drug cartel! They have a cash cow and they will tax it into the ground-which is proof that even if a socialist state somehow enables a successful business they will then destroy it. As Elton John once said, "Grow some funk of your own, amigo!"
4 people like this.
Reply 15 - Posted by:
janjan 12/18/2021 11:22:04 AM (No. 1011036)
What kind of moron do you need to be to think that your loyal liberal soldiers would be happy to pay 4 or 5 times more in a retail store than they would be charged by their neighbor? Answer, the kind who would eagerly vote to tax an industry out of existence.
6 people like this.
Reply 16 - Posted by:
Mass Minority 12/18/2021 11:22:38 AM (No. 1011038)
Lets leave the whole shoul it be legal argument aside an look at the reality. The very root of our drug problem is not the drugs per se, it is the money involved in illegal drug trading. No eradication or elimination program will ever work unless it addresses this fundamental fact. The legalization dogma was always based on regulate and tax, and sold as a revenue positive alternative to endless policing.
But in an efforst to make as much money for the state as possible they managed to both legalize, and overprice tha comodity. They left pretty much 100% of the profits from illegal drug trading in place/ Now they are surprised that consumers will follow the cheapest source for their products. Its really simple, the legal state has priced itself out of thw market and is being outcompeted on both price and quality. Econ 101.
The only way this ever works is actual legalization. No licenses, no permits no taxes. MAke it legal to grow as much as you want, whole 40 acre fields if you want. Make it legal to give it away in any quantity you want. Ignore it entireley/ That is until money changes hands. Once a single dime is used to complete a transaction , make that a felony. Now you have yaken all the money out of the business. Society of cource will need to deal with the issues, as we routinely deal with those issues from alcohol, cigarettes and other so called sin products.
Until the profit is taken away from illegal drug dealing the illefal drug dealers will always win, because they will always innovate in response to government actions.
1 person likes this.
Reply 17 - Posted by:
Strike3 12/18/2021 11:41:14 AM (No. 1011075)
This is the most useless and destructive industry in the country next to casinos, big tobacco and family planning clinics. Die in peace, it sucks to be you.
6 people like this.
Reply 18 - Posted by:
JHHolliday 12/18/2021 12:31:36 PM (No. 1011142)
A perfect example of government economic stupidity. Many years ago the feds seized the legal Nevada brothel, The Mustang Ranch, for back taxes. They continued to operate it while looking for a buyer but lost a lot of money before they could sell it. Someone said the federal government couldn't even sell whiskey and sex and make a profit (I put sex instead of a cruder term that most of us are familiar with).
2 people like this.
Reply 19 - Posted by:
smokincol 12/18/2021 12:33:34 PM (No. 1011144)
won't make me sad or cause me to lose any sleep.
0 people like this.
Reply 20 - Posted by:
Lawsy0 12/18/2021 1:29:52 PM (No. 1011213)
Does that mean that dopers in Calipornia will have to go back to growing their own? And without a proper license? Oh the humanity!
0 people like this.
Reply 21 - Posted by:
columba 12/18/2021 1:53:37 PM (No. 1011239)
Warn?
Dope continues to be for dopes.
0 people like this.
My favorite Millennial expression: "Sucks to be you."
Very succinct expression, tells you two things:
+ The speaker understands the target's misery; and
+ Has no sympathy for them.
1 person likes this.
Reply 23 - Posted by:
MickTurn 12/18/2021 5:07:48 PM (No. 1011367)
Well morons, if Californication isn't chasing down illegal pot sellers, join the party...
0 people like this.
Reply 24 - Posted by:
MickTurn 12/18/2021 5:11:06 PM (No. 1011369)
Hey, found this out from a friend in Colorado pot growing business...
Once the plants get about 3-4 ft. high they pinch the tips off ALL the branches.
This fools the pot plant into thinking they are ALL seed pod producers...guess what, MORE seed Pods, More THC containing tips...
0 people like this.
Reply 25 - Posted by:
or gate 12/18/2021 6:38:02 PM (No. 1011446)
Duh,
liberals
0 people like this.
Reply 26 - Posted by:
RuckusTom 12/18/2021 10:39:23 PM (No. 1011566)
Golly, you mean all the fees, the taxes, inspections, etc. etc. - all passed on to buyers - causes huge overhead making the black market much cheaper? And that's not considering that it's illegal at the federal level and it's shunned by the banking industry (all cash businesses are prime targets for smash and grab or worse).
0 people like this.
Reply 27 - Posted by:
mifla 12/19/2021 5:15:07 AM (No. 1011662)
Guys, it was made legal so the state could tax the heck out of it. Put down the bong, clear the head, and face facts.
0 people like this.
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Just like in Oregon, CA finds that black market dealers have a huge advantage.