Crisis Breeds Opportunity: Tax Pot

TW: I will continue pounding the table on this one!! I dont like regressive taxes but sin taxes are the exception.

From Economist:
"THE states facing in their greatest revenue crunches since 1939, and they're run by legislators who—understandably—don't want to lose re-election by raising taxes on everyone. Thus, they're getting creative.

Assemblyman Tom Ammiano, a freshman from San Francisco, made a proposal intended to increase revenue, and, no doubt, appetite: legalizing and taxing marijuana, a major—if technically illegal—crop in the state. "We’re all jonesing now for money," Mr Ammiano said. "And there’s this enormous industry out there."

In general, sin taxes are the most regressive—and popular—taxes that legislatures can enact. A marijuana tax would be less regressive than a cigarette tax, given the demographics of each drug's smokers. In some quarters it would be extremely popular. And the money it would cost to collect the tax would be a pittance compared to the money saved by police no longer making marijuana arrests. So is this enough of a crisis to give it a try?"