Posts Tagged ‘Tax and Regulate’
When Gallup first asked Americans how they felt about marijuana in 1969, only 12 percent of respondents favored the legalization of weed. That number has increased steadily with each passing decade, and in October 2011, Gallup reported that 50 percent of Americans favor the legalization of marijuana, the country’s most popular illicit drug.
The shift in popular opinion reflects not just decades of scientific research showing that marijuana is relatively safer than both alcohol and harder drugs (including many prescription pills), but also the savvy PR efforts of drug reform wonks and activists. When even conservative Christians such as The 700 Club’s Pat Robertson are calling for legalizing pot, you know that the war on the War on Drugs is not just winnable, but practically over.
But that doesn’t mean all arguments in favor of legalization are equally good, effective, or factual. Here are the three weakest arguments for legalizing marijuana. As you work to convince the shrinking ranks of drug prohibitionists – we’re looking at you, Mr. President! – don’t make these rookie mistakes when arguing for changing the legal status of cannabis.
3. Legalizing Marijuana Will End Cartel Violence in Northern Mexico
The election of Mexican President Felipe Calderon in 2006 ushered in a new era of prohibition-fueled drug violence. Six years and 50,000 drug-war deaths later, the argument that repealing marijuana prohibition could stem the violence in Mexico and along the U.S. border is ubiquitous. The claim was a major selling point for Proposition 19 in California, which would have legalized marijuana and subjected its sale to taxation and regulation, and has been made repeatedly by drug reform advocates in the two years since.
“We have created an illegal marketplace with such mind-boggling profits that no enforcement measures will ever overcome the motivation, resources and determination of the cartels,” Libertarian Party presidential candidate Gary Johnson wrote in a 2011 op-ed for The Washington Times. Legalizing pot, he added, would deny the cartels “their largest profit center and dramatically reduce not only the role of the United States in their business plans, but also the motivation for waging war along our southern border.”
But there are objections to that claim. In October 2010, the RAND Corporation released a study saying that Mexican cartels derived only 16 percent of their revenue from marijuana. (As pointed out by NORML, that number conflicted with the ONDCP’s estimate that 61 percent of cartel revenue comes from marijuana.)
In June 2011, Mexico analyst Sylvia Longmire argued that cartels have diversified to the point that legalizing marijuana might dent their war chests, but it won’t stop them; they’d still make money stealing oil from pipelines, pirating and selling contraband intellectual property, extorting small businesses, bribing politicians, ransoming kidnap victims, manufacturing and moving harder drugs such as cocaine, heroin, and meth, and trafficking undocumented immigrants and sex workers.
In 2011, David Borden, executive director of StoptheDrugWar.org, emailed me with objections to Longmire’s argument: “Some of the other criminal enterprises that cartels are involved in (enterprises they’ve been able to enter because of having drug cash and organizations built by drug cash) are less straightforwardly tied to demand, such as kidnapping for ransom, but they have their limits—for all we know they are already doing as much of those things as they think could be sustained, and the more profit they continue to make from drugs, the more money they are going to invest in all kinds of enterprises, both illicit and licit.”
“Will the cartels vanish from the face of the earth because of marijuana legalization?” Borden continued. “Probably not. Would even full legalization of all drugs accomplish that? Unclear.”
That lack of clarity is exactly why marijuana reformers should be careful when promising what legalizing pot can and can’t do for Mexico. The war on drugs has weakened the country’s political institutions, corrupted its military and police forces, and devastated its economy. While pot legalization in the U.S. would allow users to divest from the cartels’ brutality, pitching marijuana legalization as anything other than a baby step toward peace and stability in Mexico puts drug reformers on tenuous grounds.
2. Marijuana Should Be Taxed and Regulated Because It Is America’s Largest Cash Crop
In 2006, ABC News reported that with “a value of $35.8 billion, marijuana exceeds the combined value of corn ($23.3 billion) and wheat ($7.5 billion).” That number came from a report published by Jon Gettman, director of the Coalition for Rescheduling Cannabis. Gettman arrived at this figure by multiplying the estimated number of metric tons of marijuana cultivated in the U.S. in 2005 (10,000 tons, or 20 million pounds) by a production value of $1,600 per pound.
Drug law reformers claimed Gettman’s report was evidence that eradication and enforcement efforts had failed. In the intervening years, however, the statistic has been used to make the case that taxing and regulating marijuana would solve many of America’s fiscal woes. The former argument is a sound one, the latter is not.
Here’s why: Gettman’s estimate of $1,600 per pound was conservative when compared to law enforcement agencies, which in 2005 cited the street value of marijuana at between $2,000 and $4,000 a pound. Marijuana cultivated in a post-prohibition market, however, would cost a fraction of that.
“To get a sense of the disparity in price between legal and illegal drugs,” Reason‘s Jacob Sullum wrote in 2007, “compare the production value of marijuana—about $1,600 per pound, by Gettman’s estimate—to the production value of tobacco, a legal psychoactive weed that U.S. farmers sell for less than $2 per pound.”
Let’s go back to 2005, make marijuana legal, and give it an astronomically high production value of $800 per pound, or half of Gettman’s black market estimate: It would have tied with soy beans in 2006 as America’s third largest cash crop, with an average production value of roughly $17 billion. If it had the same production value per pound as tobacco, or $2, its APV in 2005 would have been $44 million; or less than 10 percent of beans, 2005’s 20th most valuable cash crop.
So while pointing to marijuana as America’s largest cash crop is a good indicator of its popularity (and arguably, the safety of its use), it doesn’t follow that taxation and regulation of the drug in a post-prohibition market would be an unlimited boon to government coffers, especially when factoring in the costs of an aggressive regulatory framework.
1.) Marijuana Should Be Legal Because It’s Medicine
There’s no question that marijuana eases pain, stimulates the appetite, reduces nausea, and helps with a slew of other physical and psychological ailments. There is some question, however, as to whether promoting it as medicine is the best political strategy for making it fully available as a recreational drug.
Earlier this year, NORML Executive Director Allen St. Pierre wrote a searing critique of the medical marijuana strategy.
“If this were the 1920s, advocacy of today’s ‘medical’ cannabis industry would sound like a lawyer back then fronting for the legal sellers of ‘prescription’ alcohol during Prohibition. Prescriptive alcohol was a sham then, and the ‘medical’ cannabis industry (not medical cannabis itself) is largely a sham now.”
“Cannabis consumers,” he continued, “who NORML represents, want good, affordable cannabis products without having to go through the insult and expense of ‘qualifying’ as a ‘medical’ patient by paying physicians and/or the state for some kind of get-out-of-jail-free card. How intellectually honest is all of this?”
One response is that successful medical marijuana ballot initiatives protect people who use marijuana for genuine medical reasons from harassment and imprisonment. But the problems with those laws–such as who counts as a caregiver, and the number of prescriptions given to people who are using it recreationally–don’t reflect well on the political acumen of drug law reformers.
Legislators and regulators are wising up and changing tactics. Because most states that currently have medical marijuana laws make the bulk of their sales to people with chronic pain—the only ailment eligible for medical marijuana that doctors can’t test for, and thus the ailment most likely to be cited by recreational users looking for safe access—Washington, D.C. decided to omit chronic pain from its list of ailments that qualify for medical marijuana. In the District, only people with cancer or a terminal illness will be able to get medical pot. In Colorado, where legislators claim only 20 percent of marijuana sales are to people with “legitimate” illnesses such as HIV/AIDS, cancer, Crohn’s disease, and MS, legislators are looking for ways to limit the number of recommendations doctors can write to the other 80 percent of users.
In short, while medical marijuana laws initially gave more users safe access, anti-pot legislators now seem to know that the best way to limit marijuana sales is to treat it exactly like advocates claim to want: as medicine subject to a strict and invasive regulatory prescription scheme.
Read Reason’s drug policy coverage here.
State legislatures have convened or are convening all around the country, and once again this year, marijuana decriminalization or legalization are hot topics at the statehouse. Legalization bills are pending in three states (as well as on the ballot as initiatives in Washington and almost certainly Colorado), decriminalization bills are alive in nine states, and bills that would improve existing decriminalization laws have been filed in two states.
And this is still early in the legislative season. Bills can still be introduced in many states, and bills that have already been introduced can advance or be killed. By around the beginning of May, a clearer picture should emerge, but 2012 is already looking to be even more active than last year when it comes to decriminalization and legalization bills.
There’s a reason for that, said leading reformers.
“We’re seeing more bills introduced, and they’re having stronger and more sponsors,” said Karen O’Keefe, state policy director for the Marijuana Policy Project (MPP). “We’re also seeing more and more public support for decriminalization and legalization. We’re approaching critical mass as more and more people see marijuana prohibition as a failed public policy, and in legislatures because of fiscal constraints and changing public sentiment.”
“Each year, these bills are easier to introduce, there is less controversy, and the media reaction is generally neutral to positive,” said Allen St. Pierre, executive director of NORML. “Baby boomers, medical marijuana, the Internet, and the state of the economy have all had an impact, even, finally, on legislators and their staffs,” he explained.
“Before 1996, nobody invited NORML; now our staff is regularly going to meetings requested by legislators around the country,” St. Pierre recalled. “First, we couldn’t get them to return our phone calls; now they’re calling us. Everything is in play because of activists around the country doing years of work.”
That contact with legislators has led to results, St. Pierre said. “We’ve been involved in almost all of this legislation. Either we helped write it or legislators contacted us for deep background and we’re testifying at public hearings on these bills.”
MPP has been busy, too, O’Keefe said. “We have paid lobbyists in Rhode Island and Vermont, and one of our legislative analysts, Matt Simon, is from New Hampshire and has been working on bills up there,” she said.
Perhaps not surprisingly, O’Keefe thought the prospects of passage were best in Rhode Island and Vermont. “In Rhode Island, more than half of both chambers are cosponsors of the decriminalization bill, while in Vermont, Gov. Shumlin has been very supportive, and for the first time we have a Republican sponsor in the Senate — we already had one in the House,” she said.
Getting a marijuana bill through a state legislature is a frustrating, time-consuming process, and there is a chance that none of these bills will pass this year. But there is also a chance some will, and some will pass eventually, if not this year, next year, or the year after.
Thirteen months ago, Rep. Ellen Story introduced House Bill 1371, which would allow the legal and regulated sale of marijuana to adults. It was referred to the Joint Committee on Judiciary then, and it is still pending. A hearing is scheduled on March 6.
Last month, Rep. Calvin Pratt (R) introduced HB 1705, which would allow people 21 and over to possess up to an ounce and allow for regulated retail and wholesale sales. Marijuana would be taxed at a rate of $45 an ounce at wholesale and at 19% of the wholesale price at retail. The bill is now before the House Criminal Justice and Public Safety Committee.
Last year, Rep. Mary Lou Dickerson (D) and 13 cosponsors introduced House Bill 1550, which would replace prohibition with regulation. It and a companion bill, Senate Bill 5598, are still both alive. Dickerson’s bill is pending in the House Committee on Public Safety & Emergency Preparedness.
On January 9, Rep. John Fillmore (R) filed House Bill 2044, which would make possession of up to an ounce of marijuana a petty offense punishable by up to a $400 fine. Simple possession is currently a Class 6 felony in Arizona.
In March 2011, the Hawaii Senate passed Senate Bill 1460, which would reduce the penalty for possession of less than an ounce to a civil fine capped at $100. The current law specifies a jail stay of up to 30 days and a $1,000 fine. That bill was carried over and is now before the House Health, Public and Military Affairs, and Judiciary committees. Also carried over is House Bill 544, which would make possession of less than an ounce a violation instead of a misdemeanor and impose a maximum $500 fine. That bill is before the House Judiciary Committee.
In January 2011, Rep. LaShawn Ford introduced House Bill 100, which would reduce the penalty for possession of up to 28.35 grams of marijuana to a $500 fine for a first offense, $750 for the second, and $1,000 for a subsequent offense. It would also reduce the charge from a misdemeanor to a petty offense. Under current law, possession of up to an ounce can be penalized with up to six months in jail and a $2,500 fine. The bill has been referred to House Rules Committee, and is still alive in Illinois’ two-year session.
Last month, Sen. Karen Tallian introduced Senate Bill 347, which would reduce several marijuana-related penalties, including by making possession of up to three ounces of marijuana a civil infraction, punishable by up to a $500 fine and court costs. SB 347 was referred to the Committee on Corrections, Criminal, and Civil Matters.
Last week, House Bill 1526, which would decriminalize possession of up to an ounce, got a hearing in the Criminal Justice and Public Safety Committee. Sponsored by Rep. William Panek (R),the bill would mandate a maximum $100 fine. It also provides for notification of parents of minor offenders, who could be ordered to attend a drug awareness program.
Last month, Assemblyman Reed Gusciora (D) introduced Assembly Bill 1465, which would reduce the penalty for 15 grams or less of marijuana to a civil penalty. The first violation would be punishable by a $150 fine, $200 fine for a second offense, and $500 after that. Any adult caught three times would be ordered to undertake a drug education program, as would any minor regardless of prior offenses. The bill is currently before the Assembly Judiciary Committee.
Last month, more than half of the Rhode Island House of Representatives cosponsored Rep. John Edwards’ bill to fine adults for simple possession of marijuana and to sentence minors to drug awareness classes. The bill, House Bill 7092, was referred to the House Judiciary Committee. Current law provides for up to a year in jail and $500 fine; the bill would make it a civil offense with a maximum $150 fine.
In February 2011, Rep. Mike Kernell introduced House Bill 1737, which would reduce the penalty for less than 1/8 of an ounce of marijuana to a fine between $250 and $2,500. Possession would remain a Class A misdemeanor, but the bill would remove the possibility of a year-long jail sentence. Fines would remain the same. A companion bill, Senate Bill 1597, has been referred to the Senate Judiciary Committee. Both bills remain alive in the state’s two-year legislative session.
Last year, a tri-partisan group of legislators led by Rep. Jason Lorber filed House Bill 427, which would reduce the penalty for adults’ possession of up to an ounce of marijuana to civil fine of up to $150. Minors would be sent to drug education and community service for a first offense, as would adults under 21 convicted of a second or subsequent offense. The current penalty for first offense possession of marijuana is a fine of up to $500 and/or up to six months in jail. Second offense possession is currently punishable by up to two years in prison and/or up to a $1,000 fine. The bill is still alive in the state’s two-year legislative session. Last month, Sen. Joe Benning (R) and Sen. Philip Baruth (D) filed Senate Bill 134, which would reduce marijuana penalties, including by reducing the penalty for possession of up to two ounces of marijuana to a civil fine of up to $100. It has been referred to the Senate Judiciary Committee.
Decriminalization Improvement Bills
Last year, legislators filed bills aimed at removing New York City’s reputation as the world’s marijuana arrest capital. The state’s current decriminalization law creates an exception for marijuana possessed in a public place and which is burning or open to the public view. The NYPD has used that exception to arrest more than 50,000 people a year on misdemeanor charges instead of issuing them tickets. In May, Sen. Mark Grisanti (R) filed Senate Bill 5187, while Assemblyman Hakeem Jeffries introduced a companion bill, A 7620. Both bills were referred to their chambers’ Codes Committees and are still alive.
A bill that would reclassify possession of an ounce as an infraction instead of a misdemeanor has been filed in North Carolina. HB 324 increases the decrim amount from a half-ounce, but removes the automatic suspended sentence for a first offense.
Twelve states have decriminalized marijuana possession so far (and possession in small amounts at home is legal under the Alaska constitution), but between an initial burst of reform activity in the 1970s and Nevada’s decriminalization in 2002, there were three decades of stagnation. Since then, three more states- — California, Connecticut, and Massachusetts — have come on board, and chances are more will follow shortly, Legalization remains a tougher nut to crack, but so far, there are opportunities in five states this year.