Steven D. Levitt, Freakonomics
It’s not often that you see a quote like this.
Referring to a new tax that will fall squarely on the shoulders of his business and just a few others, Steve DeAngelo said in a CNN article,
And we decided to step up to the plate and make a contribution to the city in a time of need.
Remarkably, DeAngelo is not just willing to pay this new tax, he actually led the effort to get the tax approved. His business will now have to pay $350,000 in additional taxes next year because of the new tax.
Why is DeAngelo so eager to pay these taxes? I’m almost certain it is not because he is an altruist.
The real answer, I suspect, is that he is generating $19 million a year in revenues selling in a market (medical marijuana) that is barely legal. And DeAngelo probably suspects that taxation will increase the likelihood that his business remains legal, for two reasons.
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