Napolitano also tells how the Harrison Narcotics Tax Act of 1914 targeted Chinese and Filipino immigrants who had cultural practices of consuming controlled opium. And, federal regulations against marijuana helped “give white law enforcement a pretext to arrest darker-skinned Mexicans” since “the crop originated in Mexico, and its use was common among Mexican immigrants.”
Drug cartels such as the Sinaloa likely pay more than most legitimate businesses pay in taxes in cash bribes to buy off Mexican authorities, Mexican citizens and American law enforcement, reports The New York Times.
Obama signed the Budget Control Act of 2011, which included a sequester mechanism. Now, Obama says he does not like the sequester mechanism because it will mean “meat cleaver” cuts to the budget.
As CNBC host Larry Kudlow tweeted: “$44 billion spending cut is only one quarter of one percent of GDP. 1.25% of the $3.6 trillion budget. But worth doing. Small potatoes.”
As you can see, this is more like a “paper cut approach” to cutting spending. But if President Obama truly thinks cutting $44 billion is a “meat cleaver approach,” then he could propose a “relaxed approach” to raising revenues: legalizing and regulating drugs.
The Justice Department estimates that Americans pump up to $39 billion into Columbian and Mexican cartels annually. Why not kill two birds with one stone by legalizing drugs, which would keep $39 billion in the U.S. while stopping the border violence?
Napolitano writes how the Anti-Saloon League succeeded in getting Congress to pass the Sixteenth Amendment, which legalized the income tax. “…prior to the ratification of the Sixteenth Amendment in 1913, the alcohol excise tax accounted for 40 percent of the federal government’s revenue.” So, prior to the prohibition, Americans did not pay income tax because alcohol was legal and regulated.
Likewise, I feel like we could eliminate or drastically lower taxes that hurt entrepreneurship by legalizing and taxing drugs like marijuana. If you don’t want to do drugs, you won’t pay a tax. And you will also not be “punished” with exorbitant taxes if you decide to start a business.
Per the Constitution, you have the right to put whatever you want into your own body; only states can ban drugs. Freedom means you have the right to decide whether to live a healthy lifestyle or to destroy your body with a habit like binge drinking. The founders understood that federal laws against drugs would violate natural law and thereby damage the psyche.
Banning the consumption of alcohol or drugs also encourages people to be physically unhealthy. The federal government is not a reliable authority when it comes to health. For example, marijuana is verifiably more effective at eliminating pain than pharmaceutical drugs. Many people in chronic pain could benefit from medicinal marijuana. But drug companies do not want to lose their monopoly, so they lobby Congress to continue fighting a futile war on drugs.
Even if you use marijuana recreationally, a 20-year study published last January in the Journal of the American Medical Association showed that moderate consumption (about a joint a week) does not damage the lungs.
The study also shows that the chemical in marijuana that gives you a high (tetrathydrocanabinol or THC) fights inflammation. So, smoking marijuana once a week is sort of like sprinkling basil on your spaghetti? Why is it illegal again?
El Chapo’s main competition is the Zetas cartel. Zetas is an example of how the underground market for one product (in this case, drugs) replaces free-market innovation with violence. Unscrupulous people start to realize that they can use violence (not innovation) to make money with all sorts of “commodities,” not just drugs. For example, the Zetas cartel uses violence to cash in on humans via kidnapping and human trafficking.
If the market controlled the price of drugs, the price would drop because the markup on the street is largely to compensate people who risk their lives to sell their product. The cartels would no longer risk wholesaling their product in the U.S. because they could not get a price to commensurate with the risk associated with trafficking. In addition, the monopoly they have would crumble.
So, legalize drugs. And scare away the ghost of El Chapo forever.
In Honor of His 103rd Birthday, Here Are The 20 Best Quotes From The Late, Great Milton Friedman | John Hawkins