Taxes, Marijuana | featured news

If marijuana is legalized and properly regulated, its proponents have long said, it could generate millions of dollars in state tax revenue. But how the drug should be taxed has proved to be a thorny question.

Medical marijuana's days may be numbered. With a true double whammy, the IRS and federal prosecutors are both using weed killer. California's federal prosecutors announced an aggressive statewide effort to shut down dozens of pot dispensaries. If that's not enough, then there's the IRS.

Could marijuana be the answer to the economic misery facing California? Democratic State Assembly member Tom Ammiano thinks so. Ammiano introduced legislation last month that would legalize pot and allow the state to regulate and tax its sale — a move that could mean billions for the cash-strapped state.

An Assemblyman from San Francisco argues that it's time to tax and regulate the state's biggest cash crop in the same manner as alcohol. Opponents say it would create new costs for society.