Taxing Marijuana

Back in January, I wrote an article about the current security status in Mexico. Mexican drug cartels are growing bolder in their attacks against local and national law enforcement in the hopes to increase their power and security in the country, allowing them to produce and sell their products domestically and internationally with little local resistance. The Mexican government has increased their attacks against the cartels, and the U.S. has offered support in the fight. However, the Mexican congress approved a bill today that would decriminalize possession of small quantities of marijuana.

In a similar manner, Governor Arnold Schwarzenegger stated today that California should looking into the legalization and taxation of marijuana. Even though he says he is not in favor of the change in legal status, he admits that it would bring a much-needed source of income that the government needs to cover their debt. Looking abroad, Schwarzenegger said “I think we ought to study very carefully what other countries are doing that have legalized marijuana and other drugs, what affect it had on those countries, and are they happy with that decision.”

So is it time for the U.S. to reexamine our laws regarding the criminalization of marijuana? According to the Controlled Substances Act of 1970, marijuana (or Cannabis) is classified as a Schedule I controlled substance. A Schedule I controlled substance means the drug has a high potential for abuse, has no currently accepted medical use in treatment, and lacks accepted safety for use under medical supervision. This runs in contradiction to the classification by the Health and Human Services division, who refers to the drug as an antioxidant.

This classification and other arguments have led to some states legalizing medical use of the drug. Medical marijuana has been advocated as a treatment for patients receiving chemotherapy, since it increases appetites and decreases the sensations of nausea. States give patients licenses to possess and/or grow small quantities of the drug, even though such possession is illegal under federal law. This contradiction between laws leads to confusion in the general public, and might be behind the recent rise in support for decriminalization of marijuana.

It is likely that domestic legal production of the drug would decrease the power and influence the drug cartels currently enjoy. Additionally, the increased source of tax revenue could lead to decreased economic burden on the public as a whole, and might be used to provide increased medical care to those who can’t afford it. However, I would still be against legalization.

If the nation does need to change it’s legal stance on the drug, they might want to consider a limited trial of reclassifying the drug as a Schedule II controlled substance. This would indicate that the government views the drug as having acceptable medical use with severe restrictions. Medical marijuana would then be legal under federal law, and as such a more proper form of regulation will come about. That might be considered a victory for both sides, and possibly the only win-win in the war on drugs.

Related articles:
The Dallas Morning News – “Mexico closer to decriminalizing drug possession”
The Wall Street Journal – “Drugs: To Legalize or Not”
Reuters – “Schwarzenegger welcomes debate over legalizing pot”
Monsters and Critics – “Schwarzenegger says debate needed on taxing marijuana”
The Christian Science Monitor – “Dude … Schwarzenegger says it’s time to debate marijuana”
Los Angeles Times – “Schwarzenegger open to studying marijuana tax idea”