Pot smokers have said forever "Make it legal, tax it, and we'll be glad to pay!" Well,

[boblgumm]

90. 104% tax and three profit margins are why prices will be double to triple in WA

The grower, the processor and the retailer all add 25 percent tax plus their margins. The retailer adds an additional aprox. 9 percent state/local sales tax. Twenty-five percent compounded three times is 95 percent (1.25 x 1.25 x 1.25 = 1.953). Add the sales tax and you have 104 percent tax. If the processor and the retailer each add margins of, let's say, 30 percent, you can add another 60 percent to the price. Here is how that would play out. Grower sells $100 of weed to processor for $125. Processor adds 25 percent tax and 30 percent margin to his price to the retailer. We are now at $193.75. Retailer adds 30 percent margin, 25 percent state tax, 9 percent sales tax for an out the door price of 317.75. If those two margins are 50 percent, instead, the price becomes $402.50.