Wednesday, May 1, 2019

What Does Big Tobacco Really Hate? Hint: It's NOT Tobacco 21 Laws

Clearly, Big Tobacco (including the quisling JUUL Labs who sold out to them) does NOT oppose raising the age limit for tobacco and vaping products to 21.  In fact, they now openly support Tobacco 21 laws, including the latest attempt at the federal level.  It appears to be a cowardly, treacherous Trojan horse to scuttle and pre-empt any laws that they oppose.

But what laws and regulations DO they really, really vehemently oppose these days?  That is the real question here and the answer is:
  • Higher tobacco taxes of any kind, especially on cigarettes but also on other tobacco and vaping products as well.
  • Flavor bans of any kind, whether menthol cigarettes, flavored cigars, or fruity and candy flavors for vape products.
And it is very telling indeed that they oppose those laws so vehemently.  Additionally, as far as age limits go, they also historically have preferred purchase-use-possession (PUP) laws over sales-to-underage (STU) laws, since the former put the onus on young smokers/vapers themselves while the latter put the onus on vendors, and Big Tobacco really HATES the latter even if they pay lip service to it. This has been true with an age limit of 18, and probably will still be their quasi-official stance under an age limit of 21.

Given what we know about what Big Tobacco likes and dislikes, it should be pretty obvious how to combat them effectively.  Don't take the Tobacco 21 bait, Congress!  Keep it 18, and enforce it better by strengthening the Synar Program for retailer compliance checks, ban kid-friendly vape flavors, consider banning menthol cigarettes, cap nicotine levels of vape products down to European and Israeli levels, phase down nicotine levels in cigarettes to a non-addictive level, and raise the taxes on tobacco products (and add a more modest vape tax too).

To sum up Big Tobacco's thought process:
  • Raise cigarette or other tobacco or vape taxes?  HELL NO!
  • Flavor bans?  HELL NO!
  • Restrictions on nicotine content?  HELL NO! 
  • Raise the age limit for tobacco and vaping products to 21?  HELL YEAH!
Remember, anything that Mitch "Awkward Turtle" McConnell (and Big Tobacco) supports has to have some sort of sinister ulterior motives.  Twenty-One Debunked opposes raising the age limit any higher than 18 on principle, regardless of why they want to do it.  But now add in this sinister Big Tobacco dimension and it only becomes all the more repugnant overall.  It truly must be opposed.

Sunday, April 28, 2019

California's--And America's--Black Market Cannabis Problem

Looks like the black market for cannabis is unfortunately alive and well in states that have legalized cannabis. This includes California after over a year of legal retail sales, and in other legalization states even after several years of legal retail sales.  So what gives?

The two biggest reasons appear to be high taxes/prices and a limited number of legal dispensaries/outlets.  The black market can easily undercut such high prices and fill in the gaps left by not enough legal retail stores, and do not have to deal with the rather onerous licensing and other regulations that legal businesses must adhere to.  When there is an artificial shortage of legal cannabis, the black market easily picks up the slack, and where there is an oversupply that makes it less profitable, some of it gets diverted to the black market to sell illegally to other, non-legalization states as well.

And then there is that 21 age limit as well, which is currently the case in all legalization states.  That also encourages illicit sales as lower-hanging fruit compared to legal dispensaries with strict enforcement. Can we get a resounding, "DUH"?

So what to do?  Cut the taxes on cannabis, yesterday, for at least a year or two before raising them again.  Consider a complete tax holiday for a few months, like Oregon did when legalization began there.  Ease up a bit on licensing regulations (and fees) for both producers and retailers.  Allow at least all liquor stores to sell weed alongside their booze, and further consider allowing any store that sells cigarettes to also sell weed as well, including grocery and convenience stores.  Lower the age limit to 18, yesterday.  Encourage current black market dealers to "go legit".  And once these things are done, then crack down hard on the black market, particularly the illegal commercial growers and higher-ups in the illegal businesses and organized crime syndicates.

Problem solved.

And of course, fully legalize cannabis at the federal level as well.  Period.

Of course, once the black market is dead and gone, then by all means, tax away.  But now is NOT the time for overtaxation or overregulation.

So what should the tax on cannabis be?  To start with, we at Twenty-One Debunked believe it should be no higher that $10/ounce for bud and $2.50/ounce for trim at the production/cultivation level, with no other taxes aside from regular sales tax.  Consider a three-month tax holiday as well, like Oregon did in 2015.  Then, after the first year or two, the tax should be no higher than $50/ounce for bud and $15/ounce for trim, much like it is in Alaska today.  As for concentrates and edibles, those are best to tax based on THC content, e.g. 1 cent/milligram of THC.

Remember, there is really no good reason why cannabis needs to be regulated any more stringently than alcohol or tobacco.  After all, while it is not completely harmless for everyone, the fact remains that by just about any objective, rational, scientific measure, cannabis is safer than alcohol, tobacco, most prescription drugs, aspirin, and even Tylenol, while it is less addictive than coffee.  Thus our laws and regulations need to align accurately with reality, since facts > feelings, even in a "post-truth" society.