A Comprehensive, and a Joint, Marijuana Tax

Abstract

The long-standing debate over marijuana legalization has reached a critical juncture, signaling a shift in public perception after years of deliberation. A significant number of states have now chosen to legalize marijuana, either for medicinal purposes, recreational use, or both, indicating a growing consensus on the issue. However, this article goes beyond the current state of affairs by exploring the historical roots of marijuana prohibition, exposing the lack of solid reasoning behind its initial ban.

Moreover, the article confronts the complex interplay between state-level legalization efforts and federal prohibition, shedding light on the resulting challenges in taxation and regulation. By proposing the implementation of a federal sales tax on marijuana, the article seeks to address this conundrum, taking inspiration from the approaches adopted by three other countries. Such a tax not only holds the potential to generate significant revenue for the government but also presents an opportunity to streamline the legal framework surrounding marijuana use and distribution. Through careful analysis and consideration of various perspectives, this article aims to contribute to the ongoing discourse on marijuana policy reform.

Keywords: Tax, Tax Policy, Tax Legislation, Cannabis, Marijuana, Federal Tax, State Tax, Pigouvian Taxes, Sin Taxes, Luxury Taxes, 280E