California’s Marijuana Industry Is Crumbling

People who assumed that legalizing marijuana would lead to a paradise on earth were unaware of a simple fact: everything government-related is either more expensive or utterly wrecks it. Both are true for California’s legal marijuana. Given the escalating expense of marijuana in California, many cannabis smokers may miss buying their dope from the cartels. Due to the lack of legal cannabis outlets in many areas of the state, people are electing to buy illegally rather than pay expensive taxes and cope with substandard service. Business representatives cannot lobby the state to lower enforcement to protect their investments because marijuana was decriminalized. More than two dozen business executives appealed to Gov. Gavin Newsom for assistance.

“Our industry is crumbling,” the letter said, given four years after widespread legal sales began. It demands the immediate removal of the cultivation tax on growers and a three-year moratorium on the excise tax. Because local governments must approve sales and cultivation, two-thirds of California communities lack medicinal marijuana dispensaries. According to the news, the present system is intended to fail everyone. They don’t expect much from the marijuana cops. Only Newsom can bring them what they want: a constitutional amendment, lower or no state taxes, and help bust the illegal marijuana trade in California.

The issue is that legal marijuana is twice as expensive. Strong Agronomy CEO Darren Story told reporters that challenging market conditions forced him to let off more than half of his staff. Consumers would be forced to pay more taxes next year, he asserted. He projected that if prices were half of what they are now, “most customers” would depart. Newsom is anticipated to include the companies’ recommendations into his budget blueprint early next year.

The present challenges faced by California cannabis producers were expected because of the government’s efforts to extract as much tax revenue as possible from the business. State officials have sought to keep costs high by restricting legal pot supply, but they’re also loosening enforcement due to racial fairness worries. Even while police continue to crack down on the cultivation of marijuana, they are still unable to locate the farmers. Half of California’s $8 billion cannabis market is illegal. Legal marijuana retailers are missing out on the jackpot since 68 percent of California communities prohibit the sale of the drug. Without state assistance, they are unlikely to survive long.