It’s The Money, Stupid.

The moral I got from watching Part 3 of “Prohibition” a movie by Ken Burns, is that when the influence of the moralists wanes and the government needs money it will scrap prohibition in favor of commerce. Especially if the bodies are piling up in America. Mexican bodies? Not Our Problem.

Where are we with drug prohibition:

Pretty far along. And that doesn’t even count the 70% to 80% that support medical marijuana.

So what about the money? The direct costs run about $25 bn a year Federal. And about $45 bn a year State and local. And then there are taxes to be collected.

A San Francisco Bay area medical marijuana dispensary that promotes itself as the world’s largest has been hit with a $2.4 million tax bill following an audit by the Internal Revenue Service, the dispensary founder said Tuesday.

The back taxes, penalties and interest levied against Harborside Health Center came after the IRS examined its returns for 2007 and 2008 and determined a 1982 tax code prohibiting cost deductions for businesses that traffic in illegal drugs applies to the dispensary.

Hmmmmmm. If this puts them out of business there will be no future revenue. No sales and other taxes for the locals. No more income taxes for the Fererales from the business and its workers. Are our politicians really that stupid? No need to answer that. It was a rhetorical question.

H/T Drug Policy Forum of Texas

Cross Posted at Power and Control