CO Legislators Scheme To Squeeze High Taxes from Marijuana

Without, somehow, driving it back underground

DENVER — Marijuana as a potential tax bonanza has Colorado lawmakers wrestling with a question both sides say they don't know how to answer: How much will people pay for legal weed?

The state House advanced a taxing measure Monday to levy a pot tax in excess of 25 percent, a reduction from the 30 percent rate lawmakers considered last week.

The proposal sparked a lively floor debate over the proper tax rate for a drug that's never been taxed before. Democrats argued that voters want high pot taxes, and that consumers will gladly pay a premium for the assurances that would come from a regulated and legal drug supply.