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Thread: U.S. Legalization of POT & Prostitution

  1. #1

    U.S. Legalization of POT & Prostitution

    I just can't wait until grass gets legalized all across the U.S. I should more particularly state that I can't wait to tax the shit out of the stuff. Colorado retail dealers can't keep the stuff in stock after legalization. Those who believe that there is not an implied LE tax on prostitution in the U.S. should take notice of the impact legalization is having on Colorado. The downside of all of this is that all those growers in Western Canada are going to get wiped out when the U.S. Tobacco Growers kick their production into gear. The U.S. should kill farm subsidies and make the farmers produce the stuff for export to China...LOL

    P.S. Yes I know they're already taxing the stuff. But I want Federal Taxes. Those that get high should pay!!!
    P.S.S. Think of all the income taxes that the IRS could pick up if they legalized Prostitution.

  2. #2
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    However there are costs of taxation. Once you start regulating and taxing, the federal government has to hire more people to do the regulating and taxing. Then you need to pay those people and build offices for them- with tax dollars.

    The deficit spending problem is that congressional leaders get re-elected based on how much federal money they bring back to their district. Even the conservative Republicans who campaign on a platform of smaller government, if they do not bring federal money back into their congressional district, the voters send them packing. Essentially it is our very electoral system that glorifies and perpetuates federal spending. Bring back federal money or lose your election, that is what every congressman learns fast. And why the Republicans are some of the worst pork barrel spenders (see Bridge to Nowhere- Republican Senator of Alaska was behind this).
    Last edited by EagerBeaver; 01-06-2014 at 08:14 PM.

  3. #3
    It's really quite amazing that so many people think that legalizing prostitution will somehow magically result is huge tax receipts. Pot sales likely would get taxed since most consumers would likely purchase the pot using debit or credit cards, thereby creating an electronic audit trail. But prostitution, even legalized prostitution, will still be a cash business. One need look no further than the 100% legal and regulated strip club business. When was the last time you received a lap dance, and the girl charged not $10 per dance, but $11.49, and then presented you with a receipt breaking down the GST and QST and listing the dancers' sales tax registration numbers? Now do you really think that upon legalization escorts are going to line up at Revenue Quebec to register for the GST and QST and start issuing receipts to clients? Like any cash business, the recipient of the cash will only report what he/she thinks is enough not to raise red flags, just as is the case currently.

  4. #4
    Quote Originally Posted by EagerBeaver View Post
    However there are costs of taxation. Once you start regulating and taxing, the federal government has to hire more people to do the regulating and taxing. Then you need to pay those people and build offices for them- with tax dollars.
    If you look back at the end of Prohibition the tax dollars intentionally generated by the availability of booze is one of the major income items that helped balance the federal budget. The same thing will happen with respect to POT. Big Tobacco needs another product to produce with sales of its core product on the wane. Farmers are going to be looking for additional income as farm subsidies slowly retract. All in all the taxing POT is nothing but a win-win situation. The only downside is people driving UI. This concerns me. But then they drive drunk now anyways, so what the hell. In addition the revenue collection mechanism is already in place and the stuff has proven medical uses.

    Would I use the stuff myself if legal? You bet. Haven't touched the stuff since I was 11 years old. But I'd line up for a little. This is Obama's chance to actually do something productive.

    For the record Bill Oreilly is against legalization: http://video.foxnews.com/v/302027052...-going-to-pot/

  5. #5
    Quote Originally Posted by johnhenrygalt View Post
    It's really quite amazing that so many people think that legalizing prostitution will somehow magically result is huge tax receipts. Pot sales likely would get taxed since most consumers would likely purchase the pot using debit or credit cards, thereby creating an electronic audit trail. But prostitution, even legalized prostitution, will still be a cash business. One need look no further than the 100% legal and regulated strip club business. When was the last time you received a lap dance, and the girl charged not $10 per dance, but $11.49, and then presented you with a receipt breaking down the GST and QST and listing the dancers' sales tax registration numbers? Now do you really think that upon legalization escorts are going to line up at Revenue Quebec to register for the GST and QST and start issuing receipts to clients? Like any cash business, the recipient of the cash will only report what he/she thinks is enough not to raise red flags, just as is the case currently.
    With the Obama Administration only signing up 2.1 Million Customers** on Healthcare.gov our little emperor needs to do something with those 16,000 additional IRS agents hired to enforce the "tax" (or mandate as normal people call it). Maybe we'll even throw in a few of those "navigators" to help. We'll give them each $200 and send them out to "audit" the escorts...LOL

    **P.S. I was one of the 2.1 Million. Saved a bundle. I want all those rich folk out there to know how much I appreciate your tax dollars.

  6. #6
    There is legal and regulated prostitution in Nye County Nevada and illegal and unregulated prostitution in its neighboring county - Clark County - Nevada. I have sampled both many times and I strongly prefer the illegal and unregulated type. Based on the quality of the providers currently serving each market, I believe the providers prefer the illegal and unregulated market, also. When cell phones and email came into being, most of the first group of well respected independent providers in Las Vegas (Clark County) were former workers at the legal brothels in Nye County. The way the government wants to regulate the industry makes the process too clinical and dehumanizing for both the sex worker and the customer. Guys do not want everything covered, the ladies do not want to be examined and poked constantly with medical exams, and neither wants to be put out in the middle of nowhere. It is not just the U.S.. Amsterdam highly regulates prostitution and as a result it is clear based on ISG reviews that Germany, Spain and the Czech Republic (none of which have as much regulation) are far more popular amongst the customers. It has been said many times that Legalization and regulation is the ultimate shakedown and I agree. The taxes will be specially levied and incredibly high, the services will be non-GFE and clinical, and the locations will be in the middle of nowhere. The only way to protect this government boondoggle will be draconian penalties against engaging in illegal prostitution. I think I would vote no to this. I like the current system where it is illegal but there are few instances of actual law enforcement activity against anything other than street action and Backpage providers.

  7. #7
    IMHO, the taxation argument, both for prostitution and pot, is a mirage because it's too easy to grow your own at low cost contrary to alcohol and tobacco and of course because it's a hand to hand money transaction. If the legal economy is able to provide the product or service at a price comparable to the black market, because it is not overly taxed, consumers may start buying from in the legal system.

    Also, in both cases, people may be concerned not to leave traces because it may affect their job (legalizing does not mean the employers will stop licensing people for using it) or their family environment.

    This applies to the current situation of the massage industry in Montréal after decriminalization. If the city chooses to emit erotic massage permits in sufficient number (around 100) and require the typical business fee (around 500-900$), it will drag a sufficient part of clients in the open economy. If it goes the Toronto way (25 permit at 13000$/y), it will produce the same result as it did in Toronto.

    The cost in police interventions in an underworld economy far outweights the money gained from high permit fees and taxation.

  8. #8
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    [QUOTE=EagerBeaver;751195]However there are costs of taxation. Once you start regulating and taxing, the federal government has to hire more people to do the regulating and taxing. Then you need to pay those people and build offices for them- with tax dollars.

    You forgot also the famous Democrat family which receives 1cent on every bottle sold in Carolina ( which is why bars only serve shots in miniature bottles ) a legalised form of graft. Taxing is simple they are business's and local state and federal taxes are already collectable by the existing systems. Additional taxes are not required.
    Taxes on prostitution, are indirectly applied as a large percentage of the monies earned are spent elsewhere in the economy at local level and taxed. Two things in life you can't escape are death and taxes.
    Do unto other's as they would do unto you BUT DO IT FIRST

  9. #9
    The government might try to tax it out of existence, or limit the activity to control it. Just like they are doing to smoking and cigarettes now.

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