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News (Media Awareness Project) - Canada: Fraser Institute Study: Tax Legalized Pot
Title:Canada: Fraser Institute Study: Tax Legalized Pot
Published On:2004-06-09
Source:Victoria Times-Colonist (CN BC)
Fetched On:2008-08-22 08:42:19
FRASER INSTITUTE STUDY: TAX LEGALIZED POT

OTTAWA -- Marijuana should be legalized and then taxed like any
another other product, says a study by an economic think-tank.

The Fraser Institute estimates that such a move would easily generate
over $2 billion a year in additional tax revenues.

All that would really change is that governments, rather than
criminals, would enjoy the spoils, argues the study being released
today by the Vancouver-based institute.

The potential tax revenue is based on the study's estimate that in
British Columbia alone, the annual marijuana crop, if valued at retail
street prices and sold by the cigarette, is worth over $7 billion.

"Using conservative assumptions about Canadian consumption, this could
translate into potential revenues for the government of over $2
billion," states the study.

"In British Columbia -- as in other provinces, notably Quebec and
Ontario, it is a significant crop that fuels organized crime."

Study author Stephen Easton, professor of economics at Simon Fraser
University and a senior fellow at the institute, estimates that there
are as many as 17,500 marijuana grow operations in B.C. alone.

About one quarter of Canadians admit to having used it, the study
says. As such, the broader question has become not whether to approve
or disapprove of production, but rather who should enjoy the spoils.

"If we treat marijuana like any other commodity we can tax it,
regulate it, and use the resources the industry generates rather than
continue a war ... that has long since been lost," said Easton.

In British Columbia, indoor marijuana cultivation and consumption
appears to be higher than in the rest of Canada, it notes. The most
striking difference is that only 13 per cent of offenders in the
province are actually charged while that number climbs to 60 per cent
for the rest of Canada.

In addition, the penalties for conviction in B.C. are low, it said.
Fifty-five per cent of those convicted receive no jail time.

A federal bill that would have decriminalized marijuana use, but
imposed harsher penalties on growers, died with the calling of the
election.
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