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The 'Laffer Curve' and Cannabis Sales and Tax Revenue

In California, lawmakers are relying on the 'Laffer Curve' to increase cannabis sales and more importantly, increase cannabis tax revenues in the State. The 'Laffer Curve' was a theory developed by Economist Arthur Laffer during The Reagan Administration which proved that decreased taxes would increase sales and therefore, ultimately increase total tax revenues collected. It's worked then and will work now as cannabis moves toward price elasticity and commoditization. This video does a good job at explaining it.

SOURCE:

California Democrats use the ‘Laffer Curve’ to justify a cannabis tax cut

Former President Ronald Reagan's economic adviser Art Laffer breaks down how his famous tax algorithm works.

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Posted by CAN Staff in Business on February 12 at 08:10 AM  ·  Public

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