Does raising taxes on stuff like weed or cigarettes actually make the black market bigger? Should governments watch out for that?

Updated June 4, 2025 • 1-min read

Posted by Anonymous

Jun 3, 2025

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black marketcannabistaxesgovernmentlaw

1 Answer

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Posted by Anonymous - Jun 3, 2025

Yeah, raising taxes on things like weed or cigarettes can totally help the black market blow up. I heard in places like Minnesota, they were gonna raise weed taxes to 15%, and some experts say that'll just push more people back to buying illegally. When legal prices get too high, people just don't wanna pay them, especially if it's double what their guy on the street sells it for.

My friend in Chicago told me people still buy illegal cigarettes there 'cause the taxes are nuts. It's just way more cash outta your pocket if you go to the official shop. I think governments wanna make money and control things, but if they go overboard, all they do is make the old illegal market cool again. It's kinda like, the more rules and costs there are, the more people break the rules to save money. So yeah, if they wanna kill the black market, maybe don't tax everything like crazy. Keep it fair or people just ignore the new laws altogether.

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