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.

The Naturalistic Fallacy and Consciousness-Altering Drugs

A great and famous observation in philosophy is known as Hume’s guillotine, and it can be found “In every system of morality, which I have hitherto met with” (Hume’s words). This observation is that people aren’t very good at describing reality as it is, but rather seem to prefer to describe it as it ought to be.

This general confusion of how things are and how they ought to be has led to all manner of incorrect thinking. One assumption, when applied to drugs in general (not just drug law in particular) seems to be that the human mind works most rationally and correctly when not under the influence of any external drugs – which is, as this reasoning glibly assumes, its ‘natural’ state.

An implication of this assumption is that any person under the influence of a psychoactive drug is ‘high’ or ‘intoxicated’ and thus cannot be trusted to do anything at all competently, perhaps not even verbally describe reality or their own will.

As any psychonaut can tell you, this is complete shit.

For one thing, we are almost always under the effects of one psychoactive drug or another. At any one point in time, close to half of us are either somewhat drunk or somewhat hungover, most of us have a least a buzz going from a solid dose of caffeine at some point in the morning or a haze going from a sleeping pill at some point in the evening, about a quarter of us smoke tobacco, and over a third of us are under the effects of psychoactive medicine prescribed by a doctor.

We’re never clean – so how do we know it’s better?

Secondly, there are already powerful psychoactives that are natural, and our brains are full of them. Our brains are naturally a store of psychoactive chemicals called neurotransmitters, of which there are over 100 known.

Some of them are well known, such as adrenaline. Yes, the rush you get from fighting or from nearly being killed is literally just a drug rush: adrenaline binds to adrenergic receptors, which causes the blood flow to heart and lungs to increase and the muscles to surge with energy in preparation for possible mortal combat.

Few would argue that this burst of manic energy, which often brings with it cerebral haemorrhages and heart attacks, could possibly be more healthy than smoking some Northern Lights and relaxing for the evening. But some will.

Thirdly, there are many ways of altering consciousness that don’t even involve psychoactive drugs. There is music, meditation, physical exercise, and if one has never altered consciousness from making love one simply hasn’t done it right.

If it’s possible to significantly alter consciousness by ‘natural’ means then it can hardly be argued that sobriety is itself natural. Indeed, the idea that humanity’s natural state is to wallow in mind-rotting tedium is probably a masochistic artifact of Abrahamic influence or a consequence of the brainwashing that was done to condition people to industrial era labour.

A fourth and final point is that in some cases the human mind demonstrably works better when influenced from the outside. When a child is born, the act of nursing and being nursed releases oxytocin in both mother and baby.

Oxytocin is known as the “love drug.” Large doses of it in the brains of females while making love will induce them to favour a monogamous pair bond with their partner. This neurotransmitter appears to play a role in all kinds of emotional bonding and interpersonal solidarity, as it is released by pleasant physical contact like being caressed or stroked and brings with it a reduction in anxiety and fear.

The baby needs this release of oxytocin in order to be healthy, because, without it, they tend to develop to be suspicious and cold, probably because they have internalised a moral value that the world is a place where no-one really cares about each other.

Thus it can be seen that, in some cases, a drug that requires an external influence is a natural part of the human experience as a consequence of humans evolving as a mammalian, and thus social, species.

All of these arguments taken together suggest that the received wisdom of “Drugs bad no drugs good” is not only far from the truth but could be dangerously counterproductive.

There is actually a lot of merit to the counterargument. Looking at the drug intake of most of our greatest cultural icons demonstrates clearly that the unique and original thoughts common to many drug experiences is a powerful facilitator of creative achievement.