Schedule 1 to Schedule 3

Investment Analysis Clubs Macro Economic Trends and Risks
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Finally! I’ve been preaching on this topic for far too long. Finally, the government is taking action on something that should have happened years ago.

In a letter obtained by Bloomberg News, a Health and Human Services Department official wrote to Drug Enforcement Administration Administrator Anne Milgram that marijuana should be classified as a schedule three substance, which consists of drugs “with a moderate to low potential for physical and psychological dependence.”

This would be a massive change if nationwide we no longer needed to dedicate so much resources to investigating and prosecuting pot. It would also bring in new tax revenue ($15 billion in 2022) for those states that get on board. Lastly, this should hopefully lead to changes in the banking sector that would allow those facilities to actually use banks.

The amount of tax revenue generated could cover the cost of Medicaid expansion in those states that have yet to do so.

Schedule 3 is better than Schedule 1, so certainly not “Mission Accomplished” but a significant step in the right direction.

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Which are, perversely, the least likely to set up anything approaching “legal” even as they refuse better health care for their citizens.

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Cannabis taxes raise more money in Washington State than alcohol taxes by quite a bit, and Washington State has the highest alcohol taxes in the nation.

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I would suggest that, in several states, the additional tax revenue will not go for Medicaid, or education, or infrastructure, or environmental protection. It will be used to cover more tax cuts for the “JCs”. A few years ago, Michigan raised fuel taxes and vehicle registration fees, to raise $300M. “for the roads”. Of course, the (L&Ses) withdrew $300M from road funding that had been coming from General Revenue, to help cover two rounds of tax cuts for the “JCs”. I would go farther, and propose all “sin taxes” on lottery, gambling, tobacco, alcohol, dope, are all intended as a money transfer mechanism, transferring from the proles to the “JCs”.

Steve

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