Rocky Mountain High and Unintended Consequences

Colorado and Washington are the first states to legalize recreational marijuana.  In my state of Colorado, Amendment 64 was passed by 55 percent of voters by ballot referendum last year and took effect on January 1 of this year.  State government officials are giddy with the prospects of increased revenue from marijuana sales.  Marijuana tourism is booming in Colorado, giving new meaning to “Rocky Mountain High.”  Now, four months into this new experiment, it may be worth looking at some of the unintended consequences. Tax revenue may not be as much as anticipated, according to Governor John Hickenlooper.  No surprise there; government officials salivating over this supposed cash cow may get a chicken rather than a cow.  With legal weed costing three times as much as black-market weed, savvy consumers may go with the cheaper product in the same way they did before legalization.  Remember the luxury tax on yachts about 15 years ago that...(Read Full Article)