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snyps on 26 September 2013
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Kasz216 said:
snyps said:


Wrong. The pretense here is legal prices with tax included will be the same as street prices. You act as though drug producers won't form legitimate companies to sell their products. Those columbians and afganies will become legitimate suppliers. Just admit ending prohibition will make america safer and lets end this ridiculous charade.


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. 

 

The market will determine the price.  That's capitalism.  Drug stores will be competitive.  Let's assume your reasoning on inflated prices is correct.  It won't change the supply and demand effect on pricing.  Is it cheaper to buy drugs illegaly or legaly in Amsterdam?   Sure if some one wants to lower their price and sell to a local street dealer they can.  But at the very top of this chain are a bunch of business professionals.  Do they want to sneak around and kill their way to profits or set up an LLC and use federal express. 

 

Why?  Why can't Columbians and Afghanies sell to the US?  Why do you call the Columbian Gangs "illegal"?

 

Look at the way amsterdam handled their "heroin alley".  They don't have a black market of any consequence.   The US government will collect sales tax.  Maybe decades from now they will create a BS safety/edu tax long after the black markets are vanguished.  I just don't see where you are getting your opinion that a legal market isn't going to stamp out the illegal market.  Do you have examples of this happening in history anywhere? 

I'll assume you've seen breaking bad & scarface, just for fun, imagine what Walter White, Gustavo Fring, or Tony Montana would do in real life is prohibition ended... don't kid yourself. They'd be at the secretary of state's office signing a business license faster than you can say "los pollos hermanos".