More proof that government involvement could screw up a wet dream - tax revenue from pot falls far short of expectations. So expected tax revenue in Colorado was supposed to be $33 million in the first six months but was instead about $12 million. I could have sworn that initially tax revenues were way above expectations so I guess after the opening jolt of people buying "legal weed" for the first time or out-of-staters coming in for "pot tourism" - has the demand fallen off?
If the price for legal weed is much higher than the street price then it makes sense(imilla) to buy "black market". But isn't this counter intuitive? When prohibition ended - people didn't keep buying home brew - they started buying the "real stuff" because it was better and cheaper. Are the taxes and fees so high as to make "legal weed" too expensive? Because I'm having a hard time believing that the street weed is of better quality than the legal stuff.
Supposedly the prices are dropping due to competition among "dispensaries" but even at a price of $100 for a 1/4 ounce - I can see why many would buy from street dealers instead. So the question remains - is the government too greedy or is the demand actually less than everyone thought?
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