Wednesday, January 17, 2007

Thinking up new ways to make money ...

Should Illegal Drugs Be Taxed?

In April of 2005, Jeremy Robbins was arrested attempting to traffic two tons of marijuana from Arizona to East Tennessee. Indicted on federal drug conspiracy charges, Robbins was soon assessed a $1.1 million fine from Tennessee's Department of Revenue. The reason: failure to comply with the state's Unauthorized Substances Tax, which requires anyone in possession of a certain quantity of contraband — in the case of marijuana, more than 42.5 grams — to buy a tax stamp from the state government and affix it on the drug.

The so-called "crack tax" applies to controlled substances like marijuana and cocaine, and also illicit alcoholic beverages like moonshine. It allows someone to anonymously purchase stamps in person from the Department of Revenue based on the type and amount of the substance ($3.50 for a gram of marijuana, $50 for a gram of cocaine, etc.) with the understanding that doing so cannot be used against them in a criminal court. Posessing drugs is still illegal — the tax works completely outside the criminal justice system. A stamp cannot provide immunity from criminal prosecution, and a conviction of possession isn't required for the Department of Revenue to assess the penalties.

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Uh, yeah. This just seems absurd to me.

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