"Why on earth would the government tax themselves out of the market? That's just stupid. "Are you living below ground, and not tuned into the news?
Look at the taxes on cigarettes, and tell me again how the gubmint has "taxed themselves out of the market".....
Cigarettes? I guarentee that 90% of cigarettes are bought from a legal source. And they still pale in comparison for the price of illegal pot, which goes for around $300 or so an ounce (at least the top quality). Top quality tobacco goes for, what, $5? $10?.
They can tax the bejezus off of pot and still have it way below the black market price.