Cali Plug started Skid Row Smoke out

Описание: Cali Plug, founded in 2006, represents California-based weed suppliers. The brand has been successfully marketed and built through Snapchat, other social media platforms, and pop-up events. However, the business faces significant challenges: government regulations have eroded profit margins, and the market has become crowded, including elements of organized crime.

Many operators intended to comply with legal standards to meet market demands but were driven back into the black market due to regulatory pressures. This has created a gray area in the marketplace, where licensed growers are sometimes forced to sell products illegally. Only the strongest businesses survive in this environment, and Cali Plug has had to continually reinvent itself to maintain its relevance and independence.

Proposition 64, which voters approved in 2016 to legalize cannabis, aimed not only to raise tax revenue but also to eliminate the illicit market, protect public health and safety, and create an accountable legal industry. Yet today, four years after legal sales began, the industry is collapsing, with California's leadership and legacy on the brink of disappearing.

The chance to establish a robust legal market has been squandered due to excessive taxation. Currently, 75% of cannabis in California is consumed in the illicit market, which is untested and unsafe.

From the start, the state’s tax system has burdened small businesses. As of January 1, cannabis is taxed at a flat rate of about $161 per pound, in addition to a 15% excise tax and local taxes on cultivation, manufacturing, processing, distribution, and retail.

Governor Newsom, who supported Proposition 64 as lieutenant governor, indicated this week that relief might be on the way. Unveiling his 2022-23 budget proposal on Monday, he expressed support for cannabis tax reform and announced plans to work with the Legislature to modify policy.