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Federal cannabis legalization could trigger higher prices in California keeping the illicit market thriving

There seems to be a consensus among analysts that if the legalization bill in the Senate were to pass in its current form, “legal cannabis would become even more expensive than it already is”, reported Dan Mitchell for the East Bay Express.

According to a report by New Frontier Data, called “Up in Smoke? Analysis of the Cannabis Administration and Opportunity Act,” the bill “would advance the legal cannabis industry, while also benefiting local economies.”

However, the report warned that the bill’s proposed federal taxes on cannabis would result in a “less competitive market than the illicit one.”

Higher Taxes On One-Fifth Of The Market

The Cannabis Administration and Opportunity Act would impose a further tax, which after a few years, could reach 25%. Last month the draft bill’s sponsor, Majority Leader Chuck Schumer said last month in an appearance on ABC, “I want to get this done. And I think we will get it done because it’s so, so overwhelmingly supported by the American people.”

Meanwhile, Mitchell argues that the high prices and lack of availability in many areas of California “have resulted in legal pot taking only about a fifth of the total market.”

To Read The Rest Of This Article By Nicolas Jose Rodiguez on Benzinga

Published: September 02, 2o21

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