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Elasticities matter Does this mean that taxes are not, in fact, negative incentives

The lawsuit claims that 3Chi manufactures low THC hemp extract products, which Indiana law defines as something that is derived from or contains part of a plant that meets the definition of hemp, that has less than 0.3% delta-9 THC and that contains no other controlled substances. These products were legalized by SB 52, and are exempted from the states definition of controlled substance, marijuana, and controlled substance analog. On the other hand, the Attorney Generals office argues that delta-8 THC doesnt meet the definition of a low THC hemp extract, and that Indianas controlled substance bill, makes no distinction between the types of plants except by delta-9 THC concentration. In short, it makes the argument that the definition of hemp only mentioning delta-9 doesnt mean that all other cannabinoids are legal without limit, but that it makes a narrow exemption only for delta-9 THC at low concentrations

Very simply, when Missouri has a tax of 17 cents, it becomes extremely lucrative and favorable for street-cruising gang members and criminals to travel Downstate to pick up large loads of tobacco and make 10 times the amount of street sales or sell loosies on the street at $2 apiece along with the sale of cocaine and heroin in some of these spots, Marianos said