Daniel J. Mitchell
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I have some bad news and some good news.

The bad news is that politicians have come up with another proposal for an additional tax.

Some people like prohibition

Some people like prohibition

The good news is that they can only impose this new tax if they ease up on the silly Drug War.

That creates a bit of a quandary if you believe in freedom and small government.

But, on net, it’s a move in the right direction.

We have two examples to share. The first is from South America, where the government of Uruguay seems poised to legalize marijuana. Here are some blurbs from an AP report.

Uruguay is pushing ahead to create a legal marijuana market… The Senate planned to debate the pot plan Tuesday, with approval by the ruling coalition widely expected before the night is over. Because senators turned away all requests for amendments after it passed the lower chamber, their vote will be final.

One reason for this proposed reform is to fight organized crime.

President Jose Mujica says the point is not to promote marijuana use, but to push out organized crime. The government hopes that when licensed growers, providers and users can openly trade in the drug, illegal traffickers will be denied their profits and go away.

Let’s give President Mujica an A+ for economics. He recognizes that criminalization creates a black market.

But Uruguay politicians are not exactly dreamy-headed libertarians. Big government would be involved.

Socialist Deputy Julio Bango, who co-authored the proposal, told The Associated Press that “this is not a law to liberalize marijuana consumption, but rather to regulate it. Today there is a market dominated by drug traffickers. We want the state to dominate it.”

And the article also mentions that legalization would be accompanied by heavy taxes. I don’t like that part, but there’s no question this would be a net plus for liberty and crime reduction.

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Daniel J. Mitchell

Daniel J. Mitchell is a top expert on tax reform and supply-side tax policy at the Cato Institute.