Link the Price of Legal Cannabis to Its Potency

One advantage of a THC tax over the widely used taxation based on a percentage of price is that the THC tax won’t fall as market prices fall. Another is that a THC tax counteracts the tendency of the cannabis market to move toward more potent products. There is still much to learn about the health consequences of higher-potency cannabis products, but a handful of studies have found the more potent forms may carry higher risks of negative mental health outcomes and excessive impairment.