andyt andyt:
So let me get this straight - according to OTI, if we legalize pot, we'll be flooded with pot that we export without tax to the US and that pot will then be re-imported into Canada by criminal gangs, because the legal pot situation will be the same as the legal tobacco situation. Have I got this right?
No, you have to understand the illegal cigarette business before you can understand my point.
The majority of illegal cigarettes don't come from within Canada. 90% of illegal smokes in Ontario are manufactured in the US and smuggled into Canada via reserves. Specifically, the Akwasasne reserve.
PublicAnimalNo9 PublicAnimalNo9:
The govt "taxed themselves out of the market" because they allowed reservations to produce tobacco products.
Incorrect. The effect of Canadian reservations producing cigarettes only accounts for 10% of the illegal business. The other 90% is from American producers on reserves.
PublicAnimalNo9 PublicAnimalNo9:
Assuming your 50% figure is correct(and I'd love to see some sources for it) the vast bulk of illegal cigarette sales, regardless of percentage of market, come from sales on the reservations. And they do nothing to discourage mass volume purchases. I've seen people shell out $1400 for 2 large boxes of smokes at the Six Nations when I was a smoker. You'd have to be a moron to not know they aren't for personal consumption.
An interesting article to read which includes some of the numbers above:
http://www.nationalpost.com/opinion/sto ... 53a005cf39The government has proven that they turn a blind eye to clear violations of the law when it comes to illegal smokes and Natives and they have also shown that they milk cigarette taxes for all they're worth.
Based on that, any legalization or regulation of any drug will likely face the same consequences when the government gets addicted to the cash and still refuses to treat Natives properly under the law.