The economics of the trade have a lot of room for taxation.
Medical grade bud can be produced for about $50 per ounce, which includes electricity, nutrients, etc. (i grow on the small scale allowed by Prop. 215, so the economy of scale is what i have to deal with... i can only grow 6 mature plants at a time, and 12 immature plants)
It wholesales to the co-ops for about 175-200 dollars per ounce. (which includes several variables including potency, color, and if the local collaboratives have to grease the local politicians regularly)
Pot could be taxed $50 per ounce and probably not drive it back into black market, as many of us prefer to do things legally.
Prop. 19 in california was defeated in the last election, which means there is no tax levied on legal sales, their loss. So the black market endures, and funds the gangs.
It is interesting that the article you cited compares pot and viagra... both are only marginally legitimate drugs in most cases (IMHO), as they are mostly used for pleasure, but i guess the inability to get a boner could be a medical crisis to those afflicted. However, pot smokers are generally not an uptight and stressed out group of people. the company of an attractive woman precludes any possible need for Viagra, but that is just how i roll, your mileage may vary. So the article sort of leaves the Viagra issue behind, but if they levied a tax on it, i bet it wouldn't affect sales much, either. If they started charging a $5 tax on every Viagra pill i bet just the take from Florida alone would probably fund a mission to mars, and probably a chunk of the deficit.
