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Originally Posted by NetRodent
Who do you fear more: the police or the IRS?
They wouldn't pay taxes, but they'd be driven out of business by market forces. Why would someone buy illegal tax-free drugs from some shady guy on the corner when they could by Kellogs[tm] Kokaine, in a nice package at the supermarket for half the price?
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If you think if drugs are legalized that Wal-Mart is going to start selling them you are nuts. Businesses get protested by the religious right for selling copies of MAXIM.
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You're right, state and local government make up a far bigger percentage of education funding than the federal government. Which is why a sales tax, primarily the domain of state and local governements, on drugs could increase funding for education..
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Ok first of all my local sales tax is 9.75%( 8.75% for food ) which is a enough of a financial burden. Often drive 45 miles to the next state to buy groceries because they don't charge ANY sales tax on food and even after factoring the extra cost of gas I'm coming our ahead. Also if I have a large purchase to make I go to the next state because their sales tax is 6% on non-food items. And that's your main problem. People will go to where things cost less.
Sales taxes hurt the poor. They are already poor that's why they don't pay income taxes. How are they going to pay 40% sales tax? All that will do is INCREASE welfare rolls.