Category: cannabis

How Much in Taxes Would New Zealand Make From Legal Cannabis Sales?

With the repeal of cannabis prohibition rising higher and higher in the national consciousness, it seems like a good time to assess the economic impact of a change. The figure of $180,000,000 per year has been touted as the potential savings from a repeal, but how much tax revenue would it bring in?

The paper linked above suggests that the figure ought to be around $150,000,000 per year, but an argument can easily be made that it ought to be more.

In the first ten months of 2016, Colorado sold over USD1,100,000,000 of cannabis. This figure was so high that the total tax receipts for 2016 on cannabis sales in Colorado look set to be more than those for 2014 and 2015 combined.

USD1,100,000,000 over ten months works out to USD1,320,000,000 over twelve months or NZD1,830,000,000 at the current exchange rate. Colorado has a population of 5,400,000 compared to New Zealand’s 4,700,000, which means that New Zealand is 87% as populous as Colorado. Assuming that the total cannabis sales per person is equivalent in New Zealand and Colorado, we can assume from this that the market in New Zealand would be 87% of the Colorado one, or $1,592,100,000 per year.

Rounding this to $1.6 billion, we come to the figure of about $340 per person per annum. Hardened stoners might scoff at this figure, as it represents about one ounce per year, and New Zealand very likely has more hardened stoners than Colorado, but let’s assume this represents a conservative lower figure.

Simply taking 15% GST on this volume gives us $240,000,000 per year. So it’s fair to say that the $150,000,000 touted above is a very, very conservative figure.

This figure of $240 million is assuming that cannabis is not subject to some kind of vice tax in the way that alcohol and tobacco are. In Washington, the State Government took a 40% cut of the total sales.

The Washington market is not as well developed or planned as the Colorado one, and is thus much smaller. But if the New Zealand market developed like Colorado, a 40% tax would (even allowing for a 10% reduction in total sales on account of the tax) reap $500,000,000 per annum.

The likelihood is that someone on the Government side will end up making the argument that legal cannabis will reduce legal alcohol sales and thus alcohol tax income, and therefore a vice tax will have to be placed on legal cannabis to make up for the shortfall.

The majority of the country will find this logic entirely reasonable, which is in fact regrettable but this is outside the scope of this article. It will probably get pushed through.

In any case, the chances of a cannabis tax up to or even exceeding Washington’s 40% are very real, as New Zealand has a lot more inbred, out-of-touch, sanctimonious wowsers than Washington.

Realistically, then, we could count on tax money from a mature legal recreational cannabis market bringing in half a billion to Government coffers every year. This figure would be considerably higher if we did so now and got the jump on Australia, as there are legions of Aussies who would happily fly a few hours to New Zealand for a weed holiday.

Psychedelics or Meditation: Which is More Transformative?

Some people wonder which is the more transformative out of psychedelic sacraments or meditation. The apparent forced choice comes from the proscription against intoxication that can be found in many spiritual traditions. This article suggests that a skilled synergistic approach is better still.

Psychedelics can be transformative in an extremely dramatic way. It’s possible for someone who takes a powerful psychedelic to permanently change into an entirely different person in the space of an hour.

One drawback with the psychedelic experience is that, because the new impressions come so overwhelmingly fast and intensely they are mostly forgotten the next day (a similar but less dramatic phenomenon can be observed with naive cannabis users).

This can lead to a sense that one is forever grasping for a truth that remains, ghost-like, just out of reach. One is haunted by the idea that perhaps everything one knows is wrong, perhaps the world is entirely upside-down, and that, no matter how much sense it seemed to make at any one time, it could potentially be tipped upside-down again at any moment.

Such an experience can be unsettling, to say the least.

Meditation is the opposite in many ways. One cannot count on an immediate, life-shattering breakthough within an hour of sitting down to meditate for the first time, but one can usually count on some kind of permanent insight once one gets it right.

Some people take a long time to feel anything pleasant from meditation at all. Certain people have been lurching from one attachment to another for so long with so little questioning that their habits are far too deeply ingrained to simply quit.

Related to this, often it isn’t the actual meditation itself that brings a change but a secondary insight that comes from meditating upon the meditation. After one has had the experience of sitting down meditating and coming away feeling really good, it is only a small cognitive step to the insight that one doesn’t actually need external stimulation in order to feel at peace.

This insight is the beginning of liberation from identification with the contents of consciousness.

This column will resist the temptation to declare that meditation is somehow more ‘natural’ or ‘wholesome’ than taking a psychedelic. For one thing, much of the pleasure that comes from meditation is because the act facilitates the release of the neurotransmitter 5-hydroxytryptomine, which results in the familiar feelings of peace and serenity that accompany it (the main reason is that the topic has been discussed at length here).

In retrospect, a good way to explore the world within might be this. Take a psychedelic in the correct set and setting and let your thoughts flow freely as they do. Allow your mind to be expanded. Allow yourself to become awestruck by the infinitude of psychic impressions, allow yourself to become terrified, allow yourself to feel like God.

Then, meditate upon it all. Meditate upon the question of why ordinary life is not usually as awesome as it appears to be on psychedelics, and on the question of what is ultimately terrifying about the contents of consciousness, and on the question of what, if anything, is the difference between you and God anyway.

Allowing yourself to be shocked by psychedelic insights and then to take the fear out of them by making sense of why they occur is part of the shamanism of the 21st century. It is how modern shamans travel to the spirit world and wrestle demons for the benefit of their loved ones back in the material world.

Understanding New Zealand: Cannabis Law Reform Voters

With the news that the Greens have more or less adopted the ALCP policy from the 2014 Election, there is a sudden interest in the sort of person who might be attracted to vote Green on the basis of this policy. In this specific instance, there’s one obvious and decent-sized demographic: actual ALCP voters from 2014, who were 10,961 in number.

So who are they? Well, they’re very clearly not the same sort of person who would vote National. The correlation betwen voting ALCP in 2014 and voting National in 2014 is -0.70. This is not at all surprising as the entire point of the war on drugs was to destroy the enemies of the conservative establishment.

Neither are they likely to vote ACT (-0.45) or Conservative (-0.54). These three correlations are fairly hefty, which tells us that the average cannabis law reform voter has a considerable level of apathy for conservatism and for right-wing politics in general.

Naturally, these correlations are the opposite on the left. Voting for the ALCP in 2014 and voting Labour in 2014 had a correlation of 0.38. For Internet MANA it was 0.76 and for the Maori Party it was 0.85.

Two correlations stand out against this easy narrative of ALCP voters primarily being leftists. They are the correlation between voting ALCP in 2014 and voting Green in 2014 (0.02) and with voting New Zealand First in 2014 (0.57).

The lack of a significant correlation with the Green Party vote might surprise many. It seems to be a natural assumption that, because the ALCP policy in 2014 was always more likely to be picked up in the future by the Greens than any other party, that a strong correlation ought to exist. The reality, however, is that the Greens and the ALCP have hitherto appealed to very different demographics.

The Greens have, since at least a decade ago, deprioritised their cannabis policy in favour of all kinds of trendy issues that appeal mostly to middle-class urban elites. This explains why the correlation between voting Green and Net Personal Income is 0.31, so much more positive than the correlation between voting ALCP and Net Personal Income, which is -0.40.

Not only do ALCP voters come from the other side of the socioeconomic spectrum to Green voters, but they are also much browner. The correlation between voting Green in 2014 and being Maori is (an insignificant) -0.09; for voting ALCP in 2014 and being Maori it is a whopping 0.89, one of the strongest correlations in this entire dataset.

This also explains much of the high correlation betwen voting ALCP and voting New Zealand First. The correlation between voting New Zealand First and being Maori is 0.66. Everyone who has ever met more than a few Maoris will have caught on to the popularity of cannabis within Maori culture, and it’s not surprising given the differential in how hard the law hits them that Maori are much more likely to cast a vote for cannabis law reform.

Few will be suprised that voting ALCP has a very strong negative correlation with turnout rate in 2014: -0.68. This is, however, only slightly worse than Labour’s correlation with voting of -0.67. So it’s less to do with lazy stoners and more to do with the general disenfranchisement of those who the system does not represent.

Cannabis voters have a moderate tendency to not be religious: correlations with voting ALCP in 2014 and being Christian, Buddhist or Hindu were -0.41, -0.52 and -0.40 respectively. Mirroring this was a correlation of 0.34 with having no religion. The odd statistic here was the sizable correlation between voting ALCP and having Spiritualism for a religion: this was 0.36.

If cannabis voters are poor, Maori and non-religious, it’s probably not surprising that they’re also young. Voting ALCP in 2014 had a hefty correlation of -0.55 with Median Age, which suggests that most of the people voting on the basis of this policy are young.

Perhaps the most interesting idea from all of these statistics is that the Greens might be winning votes with their new cannabis policy at the expense of New Zealand First voters. It’s apparent that many young Maori vote ALCP out of levity in their first election and then, as they age and become less radical, come to see the merit in voting New Zealand First. The Greens would be chiefly targeting these voters with their new cannabis policy.

If the Greens are making a serious push for cannabis voters again they may find that the demographics have changed since the last time they tried it, in 1999.

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This article is an excerpt from Understanding New Zealand, by Dan McGlashan, published by VJM Publishing in the winter of 2017.