It is surprising - to the point of amazement - how little attention the Australian media has given to a law change that took place in America at the same time as their presidential election. The Americans are given to holding what amount to mini referendums on issues that collect enough signatures to go on the ballot and Californians were asked to make a decision on the legalization of Marijuana.
This presidential election drew world media attention because of the amazing progress billionaire Donald Trump made winnowing through the ranks of contenders for the oval office and his tussle with Hillary Clinton that enabled him to snatch victory. The world concentrated on the rantings of "the Donald " to the exclusion of other issues.
California is the biggest and most populous American state and it has just turned on it's head the entire American drug outlook. The people voted to decriminalize the personal possession on what had been a narcotic that could land you in prison for a life term and in effect make it legal for people to smoke this product for recreational purposes.
America now has a serious conflict between Federal and state law. Possession or use of Marijuana is still a crime under Federal law and it will be enforced vigorously. Several smaller states had held similar referendums and the Feds have induced the banking industry to refuse to accept funds generated by this activity. Now the sheer size of the California reversal makes continuing that stance impractical.
Basically, world thinking seems to equate Marijuana as a recreational drug to equality with alcohol. Alcohol in moderation is legal and widely tolerated in most countries and laws come into force when it is used to excess. Similar restrictions now apply to Marijuana in the blood stream for those driving vehicles.
That Californian decision could be the tipping point. It is hard to see how a significant portion of the American population can legally use Marijuana as a recreational drug while the rest of the country has prohibition imposed and lawbreakers are condemned to prison terms. This legal change will probably take hold in other countries.
The tax ramifications are enormous. The world alcohol industry contributes heavily to the economy of most countries by way of the tax income stream. This Californian law change entitles individuals to grow a given number of Marijuana plants - for their own consumption. It is highly likely that Marijuana may actually replace alcohol as the prime recreational substance and if this is not encompassed in the tax stream there will be a serious tax shortfall.
The original decision to restrict Marijuana was probably a knee jerk reaction which has been softening on the world scene. Detection of small amounts here in Australia usually bring just a caution and it seems inevitable that pressure for legalization will now increase. If the government decides to decriminalize Marijuana use for recreational purposes it would be wise to make sure that the production and distribution are contained within a similar tax structure to alcohol. It seems that what are often referred to as the "sin taxes " are an integral support of the Australian economy.
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