Tag Archives: Illegal drug trade

I Guess Legalization Was Not The Right Answer

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A number of states have legalized recreational marijuana with the intention of collecting tax revenue on the sale of the drug after it becomes legal. There is little thought given to the possible effects of the drug or the long-term consequences–it’s about the money. As far as the long-term consequences, I posted an article in October of last year that included a first-hand account of the effects of continuing marijuana use. Yesterday (updated today) The U.K. Daily Mail posted an interesting article about how the legalization and taxation of marijuana  has worked in California.

The article reports:

California is increasing business tax rates on legal marijuana, a move that stunned struggling companies that have been pleading with the state to do just the opposite.

Hefty marijuana taxes that can approach 50 per cent in some communities have been blamed for pushing shoppers into California’s tax-free illegal market, which is thriving. 

Industry analysts estimate that $3 are spent in the illegal market for every $1 in the legal one.

The California Cannabis Industry Association said in a statement that its members are ‘stunned and outraged.’

The group said the higher taxes that will take effect January 1 will make it even worse for a legal industry struggling under the weight of heavy regulation and fees, local bans on pot sales and growing and a booming underground marketplace.

‘Widening the price … gap between illicit and regulated products will further drive consumers to the illicit market at a time when illicit products are demonstrably putting people´s lives at risk,’ the group said, referring to the national vaping health crisis.

Los Angeles dispensary owner Jerred Kiloh, who heads the United Cannabis Business Association, said the increased levies added to the heavily taxed market ‘seems like a slap in the face.’

The changes involve taxes paid by legal businesses, which ultimately get passed along to consumers at the retail counter.

Josh Drayton of the cannabis association predicted that an eighth-ounce purchase of marijuana buds, typically priced around $40 to $45, would be pushed up to $50 or more in the new year.

There are a few lessons to be learned here. First, increasing taxes on something results in people finding another source or buying less. In this case, people have found another source. A person buying legal marijuana can be reasonably sure that he is getting the product he is paying for; however, buying any drug illegally can be very risky. This is the Laffer Curve at work–raising taxes on something will at some point decrease revenue. Second, companies don’t pay taxes–increased taxes are passed along to the consumer in the form of increased prices.

Legalizing recreational marijuana use may have unseen consequences we haven’t even dreamed of yet. In California it has not ended the illegal drug trade, and the greedy government’s taxes have only exacerbated the problem.

This Might Be A Place Where We Need To Increase Spending

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CNS News posted an article today about the role of the Coast Guard in fighting drug trafficking.

These are a few highlights from the article;

On Feb. 16, U.S. Coast Guard Cutter Joseph Napier, assisted by the coast guards of Trinidad and Tobago, seized 4.2 tons of cocaine with an estimated value of $125 million from a fishing boat off the coast of Suriname.

This is the largest single seizure of cocaine by the Coast Guard in nearly 20 years.

More recently, the crew of U.S. Coast Guard Cutter Spencer worked with the Costa Rican coast guard to successfully intercept 2,900 pounds of marijuana. Both interdictions were made possible through persistent U.S. Coast Guard presence and broad international cooperation.

…In the last 25 years, the task force’s efforts have led to the arrest of over 4,600 traffickers, the capture of over 1,100 vessels, and deprived drug cartels of hundreds of billions of dollars in profits.

However, the Coast Guard does not currently have the budget to do its job effectively:

Despite the Coast Guard’s increased interdictions in recent years, the size of its fleet and extent of its resources remain insufficient to meet the even higher rate of cocaine shipments.

Commandant of the Coast Guard Paul Zukunft stated that while the Coast Guard has “80 percent awareness” of all illegal operations, “we can only act on about 20 percent of that because of the resource constraints we have. We’re giving 60 percent of what we know, literally, a free pass.”

Programs such as the Offshore Patrol Cutter and unmanned aerial vehicle programs would be wise investments in the fight against drug trafficking.

The Coast Guard, in cooperation with other federal agencies and international partners, plays a critical role in mitigating the flow of illegal drugs from Latin America to the United States.

American leadership in both the White House and Congress should ensure the Coast Guard and other entities receive the resources they need to meet the growing demands of maritime security, while also facilitating strong relationships that mutually benefit the security of the U.S. and its partner nations.

There are many places where Congress can cut wasteful government spending if they are willing. At the same time, Congress needs to increase the money going to the Coast Guard to fight the drug war. Drugs are killing our children and ruining their future. It is in our best interests to do everything we can to stop illegal drugs from coming into America.

The Result Of Doing The ‘Popular’ Thing

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Colorado legalized marijuana in 2012. They are reaping in tons of revenue as a result, but what is the actual cost? Today The Daily Signal posted an article about seven negative results of the legalization of marijuana.

The article lists some of the negative impacts of legal marijuana:

1. The majority of DUI drug arrests involve marijuana and 25 to 40 percent were marijuana alone.

2. In 2012, 10.47 percent of Colorado youth ages 12 to 17 were considered current marijuana users compared to 7.55 percent nationally. Colorado ranked fourth in the nation, and was 39 percent higher than the national average.

3. Drug-related student suspensions/expulsions increased 32 percent from school years 2008-09 through 2012-13, the vast majority were for marijuana violations.

4. In 2012, 26.81 percent of college age students were considered current marijuana users compared to 18.89 percent nationally, which ranks Colorado third in the nation and 42 percent above the national average.

5. In 2013, 48.4 percent of Denver adult arrestees tested positive for marijuana, which is a 16 percent increase from 2008.

6. From 2011 through 2013 there was a 57 percent increase in marijuana-related emergency room visits.

7. Hospitalizations related to marijuana has increased 82 percent since 2008.

This information is from a new report by the Rocky Mountain High Intensity Drug Trafficking Area entitled “The Legalization of Marijuana in Colorado: The Impact.”

Do you love your children enough to oppose the legalization of marijuana for recreational use?

 

The Double Standard At Work

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The Boston Globe is reporting today that Boston will ban smoking in public housing, beginning in September 2012.

The article reports:

The policy is aimed at protecting nonsmokers, especially children, from breathing in secondhand cigarette smoke from neighboring units, which can cause asthma attacks, respiratory infections, lung cancer, and heart disease.

“We feel this is in the best interests of our residents,’’ said the Boston Housing Authority’s spokeswoman, Lydia Agro. “When you have buildings with multiple apartments next to each other, there is no way to contain the smoke.’’

Meanwhile, back at the ranch… WTSP Channel 10 in Tampa Bay, Florida, reports that the Florida law requiring welfare recipients to pass a drug test is a violation of the 4th Amendment.

The article reports:

In 2003, a U.S. Circuit Court of Appeals ruling from Michigan backed that up saying, “Michigan law authorizing suspicionless drug testing of welfare recipients was unconstitutional.”

…As we 10News reported Wednesday, attorneys from the ACLU are already working on a lawsuit to challenge the constitutionality of these drug tests.

First of all, I would like to state that as someone who has never smoked or used illegal drugs, I don’t have a horse in this race. I do, however, possess a rather ironic sense of humor, and I think looking at these two stories together is very interesting. Which is more harmful to a child–a parent who smokes or a parent who uses illegal drugs? Before you answer than, consider the people the parent comes in contact with in obtaining illegal drugs. Smoking is legal; illegal drugs are illegal. Why is the ACLU fighting the drug test and not the smoking ban? This seems a little odd to me.

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