Benjamin Hansen, Keaton Miller, Caroline Weber, 04 November 2017

Tax revenue has historically been one of the arguments in favour of legalising marijuana. This column uses a change in Washington’s marijuana tax regime to explore how taxation affects industry and consumer behaviour. Gross receipts taxes encourage vertical as a form of tax avoidance and thus reduce expected revenue. The choice of what to tax (revenue versus weight) also has important implications for how the market evolves.

Events

CEPR Policy Research