Cannabis legalization was sold as the end of the illicit market. Instead, stacked taxes, licensing limits, and local bans created price gaps that allowed underground sales to survive. From California’s cultivation tax to Illinois pricing and Michigan’s price compression, this installment of Cannabis Lie examines how policy design, not the plant, determines who wins and who stays in the shadows.
Tax First, Ask Later: Michigan’s Weed War
Michigan’s new 24 percent wholesale cannabis tax is being sold as a road repair plan but looks more like a cash grab. Governor Gretchen Whitmer’s law faces a constitutional challenge from the Michigan Cannabis Industry Association, while NORML’s Paul Armentano warns that greedy taxation drives consumers back underground and destroys legal markets that voters fought to build. The weed war is back this time in a budget.