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* Illinois Radio Network, which is part of the Center Square, with a story entitled “Federal Bill Could Lower Illinois Cannabis Revenue Projections”…
A federal measure that would allow marijuana business access to banks could mean a boom in investment, but it could put a dent in Illinois’ budding cannabis revenue projections.
For years, the business of medical and recreational cannabis has been “cash-only” due to federal banking laws forbidding access to banks. The SAFE Act, passed the U.S. House of Representatives last Wednesday using a parliamentary procedure but with bipartisan support nonetheless. It would remove the federal prohibition on FDIC-insured banking institutions doing business with a company that sells medical or recreational cannabis.
The nonprofit Tax Foundation said the purveyors of pot are likely jumping for joy over the prospect, but states who charge an excise tax on the monetary value of the product could see tax revenues fall short.
“With the access to financial services, greater competition could occur because a lot more startups who can then get access to startup loans to finance can get into the market to make it more competitive and drive down prices,” said Ulrik Boesen, senior policy analyst.
Now, scroll almost all the way to the end…
But, because the state maintains the ability to constrict the market by only releasing a number of recreational cannabis licenses to locations, the effect could be stifled.
Could be stifled? No. Will be. Illinois law strictly limits the total number of dispensaries. Boesen should stop commenting on Illinois until he does some actual research and Illinois media outlets should not use that uninformed commentary for click-bait headlines that are refuted near the end of the stories.
posted by Rich Miller
Friday, Nov 1, 19 @ 9:51 am
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click-bait sells papers /s
Comment by Left of the Lake Friday, Nov 1, 19 @ 9:52 am
And “stifled” also means “good for the black market”.
Comment by Winderweezle Friday, Nov 1, 19 @ 9:55 am
Obviously since it passed in the House it will pass in the Senate, since the senate just rubber stamps whatever the House passes. /s
Comment by Anon Friday, Nov 1, 19 @ 9:59 am
We are all living through Idiocracy.
Comment by SpfdNewb Friday, Nov 1, 19 @ 10:09 am
Trafficking in ignorance. SOP these days.
Comment by Sidepocket Friday, Nov 1, 19 @ 10:14 am
== should stop commenting on Illinois until he does some actual research and Illinois media outlets should not use that uninformed commentary for click-bait headlines that are refuted near the end of the stories.==
You do realize that these two things would completely destroy IRN and Square’s business model, don’t you? What do you want them to do, engage in *actual* journalism? Let be realistic here
Comment by Lester Holt’s Mustache Friday, Nov 1, 19 @ 10:25 am
Yes, this is exactly what happened with Beer too. It used to be a highly regulated market, with only a few companies that could compete. Then a couple new laws were passed in the 80s, which opened up the industry. There were a ton of new entrants, and it go so much cheaper, and the profit margins vanished. New entrants came in every day, and the prices crashed. Now it’s impossible to find a sixpack selling for more than $8.
/s
Comment by ChrisB Friday, Nov 1, 19 @ 10:30 am
Consider the source…Illinois’ mini-Faux News.
Comment by d. p. gumby Friday, Nov 1, 19 @ 10:39 am
Not surprised. If Lauterbach or Bishop can’t find someone from IPI or Wirepoints to back-up their drivel, they’ll resort to some study done at Utah State University, or another remote outpost.
Comment by efudd Friday, Nov 1, 19 @ 10:40 am
Illinois is a silly state.
Comment by Unpopular Friday, Nov 1, 19 @ 10:51 am
This is IPI propaganda not journalism, so expecting them to meet journalistic standards is not realistic.
Comment by Reality Check Friday, Nov 1, 19 @ 10:52 am
Dude, pass the Doritos.
Comment by Jeff Spicoli Friday, Nov 1, 19 @ 11:32 am
efudd -
Even better, using Breitbart without citation. Wednesday Breitbart ran a story about Social Security fraud in Puerto Rico, based upon an August report. The next day Bethany Blankley of Center Square used Breitbart’s theme as an intro into a story about past reports on Social Security fraud. Never once did Center Square say most social security fraud is people deliberately not reporting the death of family members.
Comment by Anyone Remember Friday, Nov 1, 19 @ 11:32 am
Revenues will not meet expectations because the GA severely restricted the number of recreational dispensaries, while allowing the cultivators to expand. 60 Minutes last Sunday had a good segment on California about the failure of the State to get retail licenses issued timely. Free markets is the way to go. Give everyone a license that meets the qualifications. If prices go down, the efficient survive. The licenses then have no monetary value due to scarcity alone. The State could still restrict supply to the amount of demand. Illinois will have less than half the shops Colorado has.
Comment by SW Friday, Nov 1, 19 @ 12:20 pm
===using a parliamentary procedure===
I really hate the use of this phrase. You know what’s a parliamentary procedure? A motion, a second, a simple majority vote.
The implication is that something underhanded occurred to get it to pass, but this phrase does nothing to confirm or deny that.
Comment by thechampaignlife Friday, Nov 1, 19 @ 1:03 pm
I was in Ottawa (Ontario, not Illinois) recently, and even though cannabis has been legalized for quite some time, the number of dispensaries is not keeping pace with demand so prices remain high. I estimate 2 of every 5 Google reviews not only indicate this but many include statements that people are continuing to use their dealer because the product is better and prices are lower.
That same issue of leveling supply and demand is what will hurt tax revenue here- which no doubt will be manipulated by people opposed to legalization.
Comment by Father Ted Friday, Nov 1, 19 @ 1:20 pm
Illinois won’t get as much tax revenue because of the limited licenses for cultivation centers, craft grows and dispensaries.
At least 4 of the current growers already limit how much dispensaries can buy and medical cannabis patients are learning the hard way that these growers have simply used them as a stepping stone.
Comment by Kentucky Bluegrass x Featherbed Bent x Northern California Sinsemilla Friday, Nov 1, 19 @ 2:09 pm
Money laundering and cartels come to mind…show how all your sales were for recreational weed and not some other ill gotten gain.
Comment by NorthsideNoMore Friday, Nov 1, 19 @ 2:15 pm