An open letter to native and state representatives of the State of California:
I’ve obtained quite a few letters relating to the potential Eaze worker strike on the 4/20 hashish vacation. I’m completely satisfied to announce that now we have reached a good settlement with UFCW on behalf of our workers – they are going to proceed to earn over $25/hour with ideas and luxuriate in a sturdy advantages bundle.
Being an advocate for the staff of the hashish business is a noble purpose and I take you at your phrase, as San Francisco supervisor Ahsha Safai mentioned, that your “precedence is to make it possible for the market authorized hashish works in a approach that advantages its employees, customers and taking part firms.
However with respect, I’m writing to level out the irony and hypocrisy of your letters. Our business is being stifled by authorities inaction and poor insurance policies on the state and native degree. The authorized market is ready up for failure and the federal government refuses to vary the tax, licensing and heavy regulatory construction to satisfy the wants of companies and employees.
Since you could have expressed curiosity in serving to to repair the authorized market, I’m calling on you to assist the next on the native and state degree:
1) Cut back the state excise tax to five%
2) Reduce licensing charges to lower than $10,000 per license
3) Restrict native taxes to 4%
4) Cease charging taxes on native, state, gross sales and excise taxes
The outcome could be higher costs for customers, which make them the authorized market. As soon as the authorized market is stabilized in a number of years, the charges could also be elevated once more. Because the legalization of the market, Eaze has generated $211.7 million in taxes and $35.1 million in 2023 alone.
We’d gladly enhance our worker pay charges if we reduce the $2.0 million in licenses we paid in 2023. Regardless of the $10.8 million in licenses paid as of 2018, we nonetheless have jurisdictions like San Francisco the place we nonetheless have non permanent licenses, because of the Metropolis of San Francisco's incapacity to course of purposes in a well timed method.
Regardless of being one of many largest hashish retailers in California, Eaze shouldn’t be worthwhile because of the illicit market competitors and the excessive working prices imposed by the regulatory framework. So long as we pay these license charges and clients carry exorbitant taxes, we see the illicit market proceed to thrive. Authorized market spending per capita is way decrease in California ($119 in annual gross sales per capita) than markets like Michigan ($305), Colorado ($261), or a brand new market like Missouri ( $210), the place market members pay a lot decrease cheap taxes and license charges.
Decrease taxes, take away burdensome regulation and we can pay our employees even higher wages than what we already pay. Be a part of the answer.
– Cory Azzalino
CEO of Eaze, On behalf of our 650 workers in California
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