If nothing else, what’s happening in Colorado (and Washington state) will be an interesting social experiment.
And even though we only have a modest bit of data, I’m going to be bold and assert that we can already learn two lessons from what’s happened.
1. Politicians are so greedy that they set taxes too high.
In the real world, there’s this thing called the Laffer Curve. And what it shows is that excessive tax rates don’t generate big piles of tax revenue because people change their behavior.
via Two Big Fiscal Lessons from Colorado’s Pot Legalization – Daniel J. Mitchell – Townhall Finance Conservative Columnists and Financial Commentary – Page full.