CA Is Dooming Its Cannabis Industry

Turns out legalizing marijuana wasn't quite the revenue boost the state of California was expecting.

Newly elected Governor Gavin Newsom's new state budget projects about $355 million in tax revenue from cannabis, only about half what was initially projected.

The biggest reason for the shortfall?  People are still getting their pot from the illegal market, rather than heavily-taxed legal sellers.

Despite high-taxation, there are plenty of marijuana dispensaries which operate illegally, in that they aren't charging their patients the 25%-35% tax on their medication.  

While plentiful, these dispensaries usually have a short shelf-life before they're either raided, or make the decision to shut themselves down.

Photo by Getty Images

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