g911turbo said:
Kasz216 said:
They won't though. It's not like street prices are set in stone. I've already shown street prices are greatly inflated. If you tax things at street prices, street prices will become chepear. Cocaine could get as cheap as 5-10 dollars for pure cocaine before it got anywhere near where it would be unprofitable for the cartels.
The US Government WILL NOT allow columbian organized crime and Afghanni Warlords to be producers. They won't form companies because they won't be allowed in the markets because of who they are. You really think the US government will allow illegal columbian gangs to sell in the United States?
and.... again, companies DON'T get tax money, that goes to the government. So when the government sets the tax it will essentially be setting exactly how much profit they let drug companies make. Which knowing the government, likely will be way below what would still be profitable on the street.
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Right now those drug lords do what is illegal because there is big money in it. If it becomes legal for local producers to make it, yet stays illegale for certain groups, prices STILL go down.
Now the risk:reward ratio for those illegal drug lords goes way down, making it less enticing to bother. I think you underestimate how much RISK goes in getting those drugs across the border.
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There is essentially no risk for the producers... or even the gangs that transport the drugs.
Where there is risk, is for the drug mules.
These people are already in a position to where they aren't really paid that much, and do what they do for desperate reasons.
