Taxes Are a Growing Problem for the Cannabis Industry
Marijuana prices need to be low enough to keep consumers away from the black market. However, for regulators, there's also a need to generate sufficient tax revenue from the industry so legalization can achieve various funding goals that different states envisioned when they decided to legalize pot. Finding a balance has been difficult, but few would argue that taxes are low enough for the industry to succeed.
Depending on where in the country you live, the amount of taxes that you pay on a cannabis purchase varies significantly. Customers in Anchorage, Alaska only pay up to 5% between state and local taxes, although pot there is still among the most expensive in the country. In Illinois, where pot was recently legalized, taxes can soar to more than 40%. What's surprising is that it's still not the most taxed cannabis state. That honor belongs to Washington, where state and local taxes on cannabis in Seattle can reach 47%.
Image Source: Getty Images
Source Fool.com
