Comment · Wed, November 6, 2013
Colorado voters approve 25 percent taxes on recreational marijuana
What they were answering
PSNDonutDude · 9 points
25% is a tad high. Even 5% lower would have been an acceptable middle ground. I would personally not mind paying the 25% but that is more money out of my pocket for something that really as /u/Harvinator06 said, should not have been illegal in the first place. People would be pissed if the taxes on alcohol were raised up to something higher than it is now. The other issue it with starting at something as high as 25% is it can only go higher, it is unlikely the taxes will ever be lowered.
u/MisterYouAreSoDumb
Agreed. Colorado's alcohol tax is set at $.08 per gallon for beer, and $.0733 per liter for hard liquor. Then there is the 2.9% state sales tax. It's much lower than 25%.
They are banking on the fact that people will value the lower risk of operating legally higher than the 25% tax. Another state will see what Colorado is doing and undercut them eventually. I think 25% was a bad decision for multiple economic reasons.