August 12, 2014 - Skyline Newspaper

By Skyline Newspaper August 12, 2014 9 years 342 words

States With Legalized Marijuana See Big Tax Profits and Little Competition

Since legal marijuana first began selling in Washington as of July 8, $1 million in related taxes have been collected. This number could easily increase over the next several months as …

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Since legal marijuana first began selling in Washington as of July 8, $1 million in related taxes have been collected. This number could easily increase over the next several months as more growers and retailers are granted their licenses.

The tax rate on marijuana is high in Washington — 25% is collected at each stage. Going from a producer to processor to retail to consumer can potentially add three stages of taxing. Because demand is so high and competition is so low — with only one other state, Colorado, currently allowing the sale of legal marijuana — the tax rate is doable.

Right now, much of Washington’s industry is held back simply by the lack of licenses. Many growers’ first crop has already sold out, which has helped keep prices above black-market rates. With time, the price will likely fall down to $20 per gram. Around the state, hundreds of businesses are still waiting for approval before opening their doors.

Colorado is expected to reel in eneral/2014/07/30/national-marijuana-legalization-how-much-tax-reven.aspx”>$30.6 million in marijuana-related taxes just this year. Additionally, because the states are the only two legal options so far, they benefit from increased levels of tourism, which means more revenue for residents, and more taxes for the state generated from restaurant visits, hotel stays, and more. Once Washington gets the ball rolling, it is expected to make $63 million annually in marijuana taxing.

So far, the greatest competition for these states is not each other, but the black market, which still offers lower prices in most areas. Studies have shown that 90% of buyers know when a cheaper competitor exists, and weigh that as part of their decision. However, many residents and visitors are eager to try a guaranteed legal product, and are willing to pay the difference in order to do so.

Oregon and Alaska are both voting on legalization later this year, and an estimated 54% of Americans overall now approve legalization. It is likely that several states will legalize marijuana within the next 10 years, but for now, Washington and Colorado reap the benefits of being the only real options.

By Skyline Newspaper August 12, 2014 9 years 379 words

New Estimate Places Greenhouse Contribution of Keystone XL Much Higher Than Before

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According to a new study from researchers at the Stockholm Environmental Institute, the tulsaworld.com/ap/business/study-keystone-pipeline-carbon-pollution-more-than-figured/article_7c689406-72b0-5e6b-a281-306bd8a0ef8e.html”>Keystone XL pipeline, if it is laid out, will contribute four times more to global warming pollution than what was predicted earlier this year by the State Department. The U.S., says the study, failed to account for the drop in price that would result from the pipeline — a price drop that would inevitably increase consumption. The study estimates that oil prices would drop $3 per barrel once the pipeline is operational.

The State Department had estimated in February that greenhouse gas emissions owing to the pipeline would be between 1.3 million and 27.4 million tons. Researchers involved with the study, though, say that the pipeline would contribute as much as 121 million metric tons of carbon dioxide annually, creating a significant impact on world greenhouse gas emissions. The pipeline, if completed, would stretch from western Canada to the Texas Gulf coast.

The State Department has so far declined to comment on the institute’s research. In the past, President Barack Obama has said that the U.S. would only move forward with the pipeline “if this project does not significantly exacerbate the problem of carbon pollution.” The study basically suggests that the pipeline’s addition would wipe out multiple gains made by policies working to reduce pollution.

The reaction from other organizations has been mixed. University of Sussex economist Richard Tol said that the impact is negligible. Compared to the worldwide annual release of 36 billion tons of carbon dioxide, it’s only a drop in the bucket. The American Petroleum Institute believes the study is pointless, according to spokeswoman Sabrina Fang, since the tar sands will be developed and shipped in some way no matter what, even if they are not shipped by pipeline.

Already, the Keystone XL has been among the most heavily debated projects of Obama’s time as president. Although researchers and energy companies are exploring alternative sources of energy, oil and fossil fuels still remain the top sources for powering everything from homes to automobiles. There is hope, though. Already, solar installations power about 6,000 homes in the U.S., and are reducing CO2 emissions by 27,000 tons annually.