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originally posted by: ketsuko
I would say that the 27% tax rate is likely the root of the problem more than anything else. The higher the tax rate goes, the more likely it is to push the cost up to the point where the black market remains a more effective alternative for buyers and sellers than the legal market.
Look at the cigarette tax rates as a comparison. New York state has a $4.35/pack tax on cigarettes, and they are now busting major black market cigarette rings.
If they don't make it more cost effective to buy legally, then they aren't going to make a dent in the marijuana black market in Colorado. Instead, they are just going to make themselves a handy market for all the cartel customers.