Chicago Reader

Friday, July 31, 2009

A reliable source of revenue

Posted by Mick Dumke on Fri, Jul 31, 2009 at 2:26 PM

I've got another idea for how to take care of the city's budget deficit, and it doesn't involve touching anything as sacred as TIF slush funds.

My colleague Whet Moser has a suggestion for city officials looking to plug another massive budget deficit: tap into the $1 billion of taxpayer money that's sitting in the bank, waiting for Mayor Daley and the aldermen to decide which pet projects to spend it on.

Here's an alternative. Chicago officials have been praising the wisdom of LA leaders ever since Mayor Antonio Villaraigosa started talking about following our lead and raising cash by privatizing their parking meters.

I'm talking about following their lead—with a tax on pot.

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The city of Oakland has already done it. Berkeley, San Francisco, and LA are mulling it. "There will be some cash-strapped areas that will use this to balance their budgets," one of the operators of a medical marijuana facility recently predicted in the LA Times.

Needless to say, the city and state would first have to approve the sale of medical marijuana, which is now widely available in California. When I was in Venice Beach not too long ago, vendors stood on the sidewalk encouraging passers-by to step inside and get a "diagnosis" that would warrant a "prescription."

For anything like that to happen here, Mayor Daley would have to flip-flop on his recent flip-flop decriminalizing ganja. Something tells me that's more likely after October 2, when he no longer has to try to impress the International Olympic Committee.

Legalizing and taxing pot makes sense on several levels. For starters, many of the city's other revenue streams are dropping fast; the budget is in such bad shape because Daley and his budget team predicted collecting about as much in sales, hotel, and real estate transfer taxes in 2009 as they did last year, even though it was clear when they finished the budget last fall that the worst recession in decades was upon us. The demand for pot is a bit more stable than the demand for new condos and downtown hotel rooms.

And making marijuana distribution a legal, taxed activity would also lessen the burden on cops, who will need the help. Even with a federal grant to hire 50 more officers, the Chicago Police Department will have hundreds of fewer cops on the street at a time when violence appears to be on the rise.

"Why do we arrest the individual, seize the marijuana, [go] to court and they’re all thrown out?" Mayor Daley mused a few years ago. "It costs you a lot of money for police officers to go to court."

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Right on Mr Dumke. Your arguments are sound. Why not make money off it, take away some of the criminal activity surrounding it, and do the right thing. Well played, Sir!

Posted by Lamprey on July 31, 2009 at 4:17 PM | Report this comment

Can we get the Morgan Stanley parking boxes to dispense nickel bags?

Posted by Xhoodlum on August 1, 2009 at 4:22 PM | Report this comment
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They must make this legal for me to calm my nerve and chill. My dreams and prayers will finally come true and if Daley passes this one he sadly will have my vote.

Posted by HOPING! on August 2, 2009 at 11:56 PM | Report this comment

If it is legalized I don't think there will be any tax revenue. There already is a huge illegal grower and distribution system in place. Why would they give any profits to the government? That system would continue on without paying any taxes - sure that would be illegal under the new proposal, but it is illegal now.

Posted by RealityCheck on August 3, 2009 at 9:05 AM | Report this comment

It's a way better idea than video poker, imo.

Posted by Save Street End Beaches on August 3, 2009 at 2:05 PM | Report this comment

RealityCheck: How many bootleggers and bathtub stills stayed in business after prohibition was ended? There is no question in any rational person's (i.e., non-Puritanical) mind that people will opt for the legal, taxed, and regulated suppliers. Even the shops in Oakland welcome being taxed. It is rarely 100%, but it will be a lot better than 100% illegal, untaxed, and unregulated (unknown and unsafe contents) that we have now.

Posted by derp on August 3, 2009 at 4:08 PM | Report this comment

As for the untaxed and unregulated its going on now with legal drugs if you haven't noticed with all the new prescribed drugs for just about everything. If we all forgot already majority of our illegal drugs started off as a prescribed drug then became illegal once the masses started to get their hands on them. Even today everyone knows some one that either uses legal medications or sales legal medications illegally. But when you look at the big picture yes it might put a dent in the illegal distribution of the drug and as far as taxes goes they might use that money for what they say they will. But in the end that just makes the drug more accessible to just about every one especially if you can get a prescription for any small illness. We already kicked all the tobacco smokes out of every establishment in the city now why would be allow people to smoke weed legally? So now where does that leave us?

Posted by seanile on August 3, 2009 at 9:23 PM | Report this comment

seanile... smoke from marijuana doesn't smell as bad as tobacco, and chances are people (or at least I hope) won't be smoking it all day like tobacco smokers. as a sufferer of chronic lower back pain, i was told off the record by my doctor that marijuana is better than painkillers like vicadin, and less addicting. in addition to the additional revenues from taxing marijuana, perhaps the city could have a "green saturday" to compete/compare to the "black friday" post-Thanksgiving retail shopping holiday. why do i have a feeling more people would buy green herbs than fuzzy slippers? ideally, they'd buy both, but still, the idea of legalizing marijuana is a good one, and i think it could help the economy as long as its done well. given California's horrendous economy, and a billion worth of I.O.U debts, however, i am not sure they are the act to be following, either.

Posted by Alma on August 3, 2009 at 11:13 PM | Report this comment

i hope it happens, but is California an act to follow? look at its budget woes.

Posted by Alma on August 3, 2009 at 11:15 PM | Report this comment

I say why not legalize it. We all should be free and responsible. But if you think that it will plug up a billion dollar budget short fall, you might need to smoke crack. Because of two reasons it would not make money

a) People who do drugs tend not to have alot of money.

b) Marijuana can be grown very fast and easy from a seed.

Posted by guinnessman on August 4, 2009 at 9:20 AM | Report this comment
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All comments are good and have their point, but those who get in trouble for pot are still smoking pot and are most likely not to stop smoking, so what is the point of keeping them in jail. The jails are already overcrowded and spending tax money over a dime bag it does not balance, they spend money in State Attorneys, police officers court appearances and correction facilities when they could save some $$ by legalizing and taxing citizens.

Posted by Damcrazy on August 4, 2009 at 10:14 AM | Report this comment

MAN AN WOMAN KIND ARE TO PRIMITIVE TO DEAL WITH RACE AN A HOSTED OF OTHER ISSUES!!!LEGALIZING MARIJUANA!!IT WELL NEVER HAPPEN AND THE MIDWEST CHICAGO KING OF PRIMITIVE LAND I DOUT IT!!!! IT WOULD MEAN MAN AN WOMAN KIND !!!ARE CIVILIZED AND INTELLECTUAL!!!IT WOULD MEAN LOGIC WITH HUMAN FLAWS!!!IT WOULD MEAN PEOPLE WILL GET WHAT I'M SAYING !!!AND SCIENCE OVER FICTION MYTHS OF WOMAN AN MANKIND!!AND LIFE IT SELF!!!!

Posted by SCIENCE OVER MYTHS on August 4, 2009 at 2:19 PM | Report this comment

And what about the thousands of growers, distributors and users currently sitting in jail? They must be let out!

Posted by aka_kak on August 4, 2009 at 2:40 PM | Report this comment

If you want to take the tax-revenue-generating route, fine. It's infinitely better than the present bust-and-punish model, which benefits no one.

But an even saner idea would be to allow people to legally grow their own plants. A half-dozen plants in the back yard by the tomatoes or in a container on the balcony would provide as much pot as a person could want.

Or follow the brew-at-home model and allow those who want to grow their own to do so; others who can't be bothered can pop into their local, legal, taxed county-based distributor.

Posted by richwar on August 5, 2009 at 8:18 AM | Report this comment

I think marijuana use would actually decrease use because the illegality thrill would be gone. http://www.mindreign.com/en/mindshare/Heal… has some interesting views on the subject.

Posted by johanberth on August 7, 2009 at 2:47 PM | Report this comment

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