What We're Reading: The Hidden Cost of Sin Taxes - High Taxes Undermine Goals of Cannabis Legalization, Stratcann.com, 6.24.26

June 24, 2026 4:10 PM | WACA Team (Administrator)

Stratcann.com: "A new study analyzing market factors in the US says a $1 increase in cannabis taxes leads to a $4–$6 increase in cannabis prices. Those higher prices can drive consumers back to the illicit market while reducing government revenue…The findings show that a 10% increase in cannabis excise taxes results in a 12.6% reduction in legal sales. Similarly, a 10% rise in retail prices leads to a 17.8% drop in sales volume. This sensitivity suggests that when legal cannabis becomes more expensive, consumers may shift toward illegal or unregulated markets, undermining the intended goals of legalization and taxation."

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