Editorial: Sure, reduce pot taxes. But California needs bigger fixes to its broken marijuana market

"That doesn't mean people aren't selling or buying marijuana in those communities -- they're just doing it illegally, using unlicensed shops or dealers."

"Legalization came with political compromise on taxes and rules that have stymied efforts to move illegal pot operators into the legal marketplace."

"During those three years, the state would spend up to $150 million annually to support programs that rely on marijuana tax revenue, including youth education and substance abuse prevention, environmental cleanup of illegal cannabis farms and law enforcement."

"Industry groups argue Newsom's proposal won't reduce taxes enough to help legal operators compete with the tax-free illicit market, and they're lobbying to cut the excise tax from 15% to 5%."

"To help level the playing field for licensed businesses, the state also needs to ramp up enforcement against illegal operators through strategies such as tax enforcement, administrative penalties and power shutoffs."

"Newsom wants to eliminate the cultivation tax, a flat per-pound fee paid by cannabis farmers, that has gone up each year even as wholesale prices of marijuana have gone down, squeezing profits."

"It's also a smart, small step toward fixing the state's marijuana mess that was created, in part, by Proposition 64 -- the 2016 ballot measure that legalized the adult use and sale of marijuana."

"Newsom's proposal is not a done deal."

This is a negative sentiment.

"Industry groups argue Newsom's proposal won't reduce taxes enough to help legal operators compete with the tax-free illicit market, and they're lobbying to cut the excise tax from 15% to 5%."

This is a negative sentiment.

"Newsom wants to create a $20.5-million grant program to help cities develop licensing programs and start to permit pot shops."

This is a positive sentiment.

"Newsom's proposal would raise the 15% excise tax on marijuana sales to 19% in 2025, which officials estimate will bring in enough revenue to make up for the loss of the cultivation tax."

This is a negative sentiment.

"To help the floundering legal market, Gov. Gavin Newsom has proposed tax relief in his May budget revision designed to reduce pot prices for three years and help struggling farmers and dispensary owners."

This is a negative sentiment.

"Newsom wants to eliminate the cultivation tax, a flat per-pound fee paid by caabis farmers, that has gone up each year even as wholesale prices of marijuana have gone down, squeezing profits."

This is a negative sentiment.