California Goes to Pot

Well, we all know things are getting pretty desperate in California, what with the $26 billion deficit, the IOUs to creditors, and Moody’s downgrading of the state’s bonds this week to within a stone’s throw of junk. But it says a lot for the resourcefulness of the Golden State’s lawmakers that they are seriously considering a tax on an industry that doesn’t even exist — at least in legal form.

The legislators have long suspected that a tax on sales of marijuana, one of California’s specialty crops, could be a good little earner for the state’s coffers. An analysis released Wednesday by the State Board of Equalization shows just how right they were. (more…)