Free cannabis cigarettes are not the only contributors to the new atmosphere of legalized marijuana these days. As Nov. 5 rolls around, Proposition AA begins to spark up a debate amongst business and customers.
In order to correctly address this issue, some facts must be brought up:
- The sales tax if Prop AA is passed will have a maximum of 15%
- About 10% of this rate will go to local governments
- The sales tax is subject to change, so long as it does not go over 15%, including decreasing the tax rate
- The excise tax is no more than 15%, but can be changed after January 2014
- The intent of Amendment 64 included taxing the products
- Legislators can change the tax rate
What is of the utmost concern of opponents of this tax include overtaxation and the effects that might occur with small businesses. This is a viable concern, but one that is not exclusive to just the opponents. The stance of the Denver GOP is highlighted by individual responsibility, and is affirmed by the idea of free enterprise.
Similarly, the Denver Democrats believe in individual liberty and equality, which inherently applies to small businesses. Overall, both parties do not want to impose unnecessary barriers on small businesses. This means that not only is it their ideology, but it is in their best interest to stand by their constituents, no matter what party they belong to. The tax rate therefore ought to be a matter of bipartisanship as a means to benefit small businesses.
Since this bill is not aimed at ending small businesses, the next concern is excessive taxation. What would excessive taxation be, however, is a different question on its own.
Excessive taxation will not be decided by anyone who has not taxed this product in over a hundred years. Sin taxes such as alcohol and tobacco were changed over and over again, creating a process of trial and error.
In fact, income taxes are changed incredibly often and there are still criticisms. It is not a matter of implementing the correct tax right from the start, but rather experimenting to find the most viable percentage.
Opponents should agree with this, as taxation is not only necessary, but inevitable. In order to correctly tax, it must be in our best interest to at least try.