420 with CNW — Federally Funded Study Finds High Marijuana Taxes Boost Black Market
A newly released federally-funded study suggests that states with higher taxes on legal cannabis may be unintentionally encouraging consumers to purchase cannabis from illegal sellers instead of licensed retailers. The research examined the buying habits of 1,525 Americans aged 21 and over who had used recreational cannabis within the previous month. Researchers analyzed how pricing and taxation influence purchasing decisions in both regulated and unregulated markets. According to the findings, retail prices and higher taxes were associated with reduced purchases of legal cannabis and lower THC consumption through licensed outlets. However, researchers estimated that as much as 89% of the reduction in legal cannabis consumption may be offset by consumers switching to illicit products. The authors noted…
