LEGALIZE MARIJUANA AND TAX IT

[Alfa]

LEGALIZE MARIJUANA AND TAX IT

Think-Tank: Revenue Would Be $2b a Year; War on Drugs Is Lost Anyway,
Fraser Institute Says

Marijuana should be legalized and then taxed like any other product,
says a study by an economic think-tank.

The Fraser Institute estimates such a move would easily generate more
than $2 billion a year in additional tax revenue.

All that would really change is that governments, rather than
criminals, would enjoy the spoils, argues the study being released
today by the Vancouver-based institute.

The potential tax revenue is based on the study's estimate that in
British Columbia alone, the annual marijuana crop, if valued at retail
street prices and sold by the cigarette, is worth more than $7 billion.

"Using conservative assumptions about Canadian consumption, this could
translate into potential revenues for the government of over $2
billion," states the study. "In British Columbia -- as in other
provinces, notably Quebec and Ontario, it is a significant crop that
fuels organized crime."

Study author Stephen Easton, professor of economics at Simon Fraser
University and a senior fellow at the institute, estimates that there
are as many as 17,500 marijuana grow operations in B.C. alone.

Marijuana is widely produced and about one quarter of Canadians admit
to having used it, the study says. As such, the broader social
question has become not whether to approve or disapprove of
production, but rather who should enjoy the spoils.

"If we treat marijuana like any other commodity we can tax it,
regulate it, and use the resources the industry generates, rather than
continue a war against consumption and production that has long since
been lost," said Mr. Easton. "It is apparent that we are reliving the
experience of alcohol prohibition of the early years of the last century."

In British Columbia, indoor marijuana cultivation and consumption
appear to be higher than in the rest of Canada, it notes. The most
striking difference is that only 13 per cent of offenders in the
province are actually charged while that number climbs to 60 per cent
for the rest of Canada.

In addition, the penalties for conviction in B.C. are low, it said.
Fifty-five per cent of those convicted receive no jail time.

While police resources are spent to destroy nearly 3,000 marijuana
grow operations a year in B.C., the consequences are relatively minor
for those convicted, it says. The industry is simply too profitable to
prevent new people moving into production and old producers from rebuilding.

A modest grow-operation of 100 plants generates $80,000 a year in
gross revenues, with production costs of about $25,000. It currently
costs $1.50 to produce a marijuana cigarette, which sells for $8.60.

"Unless we wish to continue the transfer of these billions from this
lucrative endeavour to organized crime, the current policy on
prohibition should be changed," it says.

Two years ago, a Senate report also urged the government to end its
prohibition on the drug and implement a system to regulate its
production, distribution and consumption.

A federal bill that would have decriminalized marijuana use, but
imposed harsher penalties on growers, died with the calling of the


election.

Im not against marajuana but i think this would be bad... to many things would go wrong... people would be high all the time with the ease of getting it then and it would drop in price... just nothing would get done... and everyone would be someone they arent really.. its good to do so often for people who want to.. but not somethin that should be legal... this stuff can effect you badly when smoked alot... hm i dont know.. i guess it most people will say its not any worse than alcohol.. but i just think that more or almost everyone would do it then and this world would not progress... and people not being themselves would bother me... its hard to explain.. prolly just me and this is my thoughts...

[sands of time]

I wrote a paper like this for school once. The teacher actually thanked me for enlightening her on the subject. She told me she had never heard the other side of the story, just the pot is bad stance, ect, that the govt likes to put in peoples heads. She said it showed her that our govt is far from perfect.

[Alfa]

Marijuana is freely available in the Netherlands and we have far less cannabis users per 1000 inhabitants than the US. Decriminalisation leads to less use. If you have a legal and a illegal substance at hand, which of those two would you choose to consume? Which would you guess has the strongest effect?

the problem in the US is that teens get bored... so many teens are depressed... so they do what? yup... sad but i bet statistically if it could be shown.. majority of substances would be by teens...

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POT LEGALIZATION RAISES FEARS OF SOCIAL IMPACT

There is possibly $2 billion in tax revenue to be had from the
legalization of marijuana, but not all federal candidates think that's
reason enough to decriminalize it.

Candidates at an all-candidates forum at the Kelowna Drop-In Centre
Wednesday were quizzed on their view of legalizing marijuana, given
the Fraser Institute's report that the industry could net $2 billion
in taxes annually for Canada.

MP Werner Schmidt, of the Conservative Party, said there may be
taxation revenue from pot sales, but the country would end up paying
more for services to combat the negative effects of the drug.

"There's anecdotal information and research that suggest the
legalization of soft drugs leads to harder drugs," he said.

"Once they're addicted, there's all kinds of social costs."

Michael Cassidyne-Hook of the Canadian Action Party said the proximity
to the U.S. has to be considered.

The U.S. doesn't support legalization and having that country next
door might pose problems.

"It's impractical with that geopolitical reality," he said.

Proponents of legalization were Starleigh Grass of the NDP and Kevin
Ade of the Green Party.

Grass said if there's no one charged with marijuana violations, it
would clear out some room in the courts.

"It would save tax dollars as these cases go through the legal system," she
said.

Ade said the tax revenue would be welcome and didn't think Canada's
policies should be dictated by how close it is to the U.S.

Liberal candidate Vern Nielsen was not at the meeting but said he
would be in favour of decriminalizing marijuana, but not making it
legal. He pointed out that pot may be used for health reasons or in
small amounts and people should not be charged for that. However,
trafficking should be a criminal offence.

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LEGAL POT OK WITH MOST CANDIDATES

Those who want to see marijuana legalized can feel reasonably comfortable
voting for any mainstream candidate in Kelowna, other than Conservative
incumbent Werner Schmidt.

Schmidt, reacting to a report from the Fraser Institute that calls for
legalization and taxation of marijuana, said the organization is basing its
proposal on "bad science." "I know from personal experience in education
that legalization of soft drugs is often a precursor for harder drugs,"
Schmidt said Wednesday.

"This is a matter of science. I would need to be convinced by
incontrovertible scientific evidence that this is a good thing to do. I
haven't seen that evidence." The Fraser Institute said in a report released
Wednesday that the government could earn $2 billion a year in revenue if
marijuana were legalized and taxed.

It's not a question of whether Canadians approve or disapprove of marijuana
use, said report author Steven Easton.

"I think it's like prohibition in the U.S. in that period, in the sense
we've tried to suppress marijuana use," said Easton, a professor of
economics at Simon Fraser University and a senior fellow at the Fraser
Institute. "If we treat marijuana like any other commodity, we can tax it,
regulate it, and use the resources the industry generates rather than
continue a war against consumption and production that has long since been
lost." Local candidates representing the Liberals, NDP and Greens support a
change to current drug laws as they apply to pot.

"I'm in favour of decriminalizing marijuana, but not legalizing it," said
Kelowna Liberal candidate Vern Nielsen, a businessman. "The penalty for use
would be more along the line of a speeding ticket than a criminal sentence.

"I think further research is needed on the effects of marijuana use, though
it should be made available in special cases where it's medically necessary
as a painkiller."

Kelowna NDP candidate Starleigh Grass agrees with the report's recommendations.

"Absolutely, it should be legalized. We should legalize it, regulate it and
tax it. We waste precious time and money in the legal system now," she
said. "Pot has been demonized. As a society, we need to recognize that it's
not as harmful as alcohol," said Grass, a university student

Green candidate Kevin Ade said his party has supported legalization of
marijuana f
or years. "We believe it would be a great source of tax revenue
as well as reducing criminal problems and reducing stress in urban areas

"I don't see why it couldn't be sold through the liquor stores or anywhere
else," said Ade, an artist and daycare worker. "It would have to be a
controlled venue, of course."

Canadian Action Party candidate Michael Cassidyne-Hook said there are
better ways to raise revenue than marijuana sales. "We certainly wouldn't
want to legalize marijuana just to realize tax revenue," he said. "A better
way to do that is to give the Bank of Canada the ability to print
low-interest money."

Huguette Plourde, the Marijuana Party candidate for Kelowna, could not be
reached for comment on what she might do with the pot tax revenue.

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REPORT WEEDS OUT LEGALIZATION

The controversy about making marijuana a legal drug has heated up as
the Fraser Institute sent out a release supporting legalization
Wednesday, only to deny the advocacy hours later.

"Marijuana should be decriminalized, treated like any legal product,
and the revenue taxed," the release stated. "Using conservative
assumptions about Canadian consumption, this could translate into
potential revenues for the government of over $2 billion."

The release was based on a study written by the institute's senior
fellow, Stephen Easton, an economics professor at Simon Fraser University.

But Easton said the press release was wrong.

"The text does not call for anything specific," he said. "The issue of
legalization is discussed in the paper, but there's no advocacy in the
paper."

The professor estimates that there are about 17,500 marijuana grow-ops
in B.C. and that B.C.'s annual marijuana crop could yield $7 billion
if valued at street prices and sold by the cigarette.

More than 23 per cent of Canadians admitted to having experimented
with the drug, according to his findings.

One of Easton's options for dealing with this is to legalize it and
invest the money now spent on law enforcement in other projects.

The study comes after a year of heated debate on the drug's status in
Canada.

In 2003, the federal government introduced a bill that would remove
criminal penalties for people possessing up to 15 grams of marijuana,
replacing the punishments with fines.

But since Paul Martin became Prime Minister, the bill has died on the
order paper. Now MP candidates in the Cariboo-Prince George riding are
once again shoving the issue into the political limelight.

"We feel that Canadians have already spoken about this bad law
(against marijuana)," said the Green party's Doug Gook at Quesnel
Secondary School last week. "Bad laws stay on the books until enough
people defy them."

"I've named the possibilities: Toque, toke, tourism," added Gook.

Bev Collins of the Canadian Action party agreed that pot should be
legalized in order for the government to cash in on the $7-billion
market.

NDP candidate Rick Smith agrees with legalization, but says the drug
should be regulated, with part of the revenue allocated to substance
abuse education.

Only Dick Harris of the Conservative party argued that pot shoul
d
remain illegal, and said he won't consider supporting
decriminalization until there are laws to address driving while under
the influence.

Staff Sgt. Keith Hildebrand of the Quesnel RCMP agrees that
legalization would increase the risk of other drug-related crimes.

"It's a dangerous drug," said Hildebrand. "I would certainly not be in
favour (of legalization.)"