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Pat Oglesby ISSDP Rome2014 www.newrevenue.org

Pat Oglesby ISSDP Rome2014 www.newrevenue.org. Revenue from Cannabis. 3 Big Questions . Tax: Whether: Yes or No? How much? How? Measure $ (€, £, ¥)? Gm? THC?. Whether? . Non-commercial alternatives: p . 12-13 Monopoly alternative: p . 3-5 Liquor monopolies Reversible

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Pat Oglesby ISSDP Rome2014 www.newrevenue.org

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  1. Pat Oglesby ISSDP Rome2014 www.newrevenue.org Revenue from Cannabis Ace in the Game Pat Oglesby www.newrevenue.org ISSDP Rome

  2. 3 Big Questions • Tax: Whether: Yes or No? • How much? • How? Measure $ (€, £, ¥)? Gm? THC? Ace in the Game Pat Oglesby www.newrevenue.org ISSDP Rome

  3. Whether? • Non-commercial alternatives: p. 12-13 • Monopoly alternative: p. 3-5 • Liquor monopolies • Reversible • Nimble pricing • Limits profit motive Ace in the Game Pat Oglesby www.newrevenue.org ISSDP Rome

  4. Ace in the Game Pat Oglesby www.newrevenue.org ISSDP Rome

  5. Ace in the Game Pat Oglesby www.newrevenue.org ISSDP Rome

  6. ¡Uruguay, Si! ¡Taxes, No! • But, assuming tax model: How much? • A story Ace in the Game Pat Oglesby www.newrevenue.org ISSDP Rome

  7. How much tax? • (Pre-tax Prices ) • Post-tax price: • Not too high • Not too low Ace in the Game Pat Oglesby www.newrevenue.org ISSDP Rome

  8. Tax as % of final price • Cigarettes in Europe: 70% and more • Marijuana in Washington ≈ 35 to 40% • Marijuana in Colorado ≈ 20% • ASSUME HEROICALLY: • $20 price per unit (1/8 oz.?) at wholesale • $40 price per unit at retail • Next slides just show rough relationship Ace in the Game Pat Oglesby www.newrevenue.org ISSDP Rome

  9. Tax = $17.5/$50 = 35% Ace in the Game Pat Oglesby www.newrevenue.org ISSDP Rome

  10. Tax = $8.16/$45.16 = 18% Ace in the Game Pat Oglesby www.newrevenue.org ISSDP Rome

  11. Tax breaks: Medical and homegrown? • Colorado: 64% of market still medical, ≈ tax-free Ace in the Game Pat Oglesby www.newrevenue.org ISSDP Rome

  12. What? • Potency: p. 6-7 • (Price) • (Weight) Ace in the Game Pat Oglesby www.newrevenue.org ISSDP Rome

  13. Problems with Price • Bundling: p. 9 at bottom • Vertical Integration: p. 10 at n. 38 • Price base amplifies problem of price drop Ace in the Game Pat Oglesby www.newrevenue.org ISSDP Rome

  14. Weight: P. 7-8 • Incentive for potent marijuana • So: • Bud vs. Trim: CO: 62¢/gm vs. 10¢gm. • Dry vs. Concentrated Ace in the Game Pat Oglesby www.newrevenue.org ISSDP Rome

  15. Other Questions: P. 11 • Where to collect: Early in supply chain • Environmental friendliness • Small business advantages Ace in the Game Pat Oglesby www.newrevenue.org ISSDP Rome

  16. Nimbleness • We know that we don’t know • Thank you – More at www.newrevenue.org • Suggestions to po@newrevenue.org Ace in the Game Pat Oglesby www.newrevenue.org ISSDP Rome

  17. Ace in the Game Pat Oglesby www.newrevenue.org ISSDP Rome

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