By Vanya Saksena, Year 12
During lunch on Wednesday the 15th of December, the Economics Society gathered to watch Jonah O’Toole and Cecilia Zoe dell’Osso, both Year 12, deliver an engaging and informative presentation on the new marijuana cultivation tax in California. Mixing economic theory with real-world examples, the duo educated the audience on the reasons for the tax and the effect it will have on involved parties.
As Jonah and Cecilia Zoe explained, The California Department of Tax and Fee Administration (CDTFA) recently introduced a new cannabis cultivation tax rate which took effect on January 1st, 2022. This tax, imposed upon cultivators of marijuana (those involved in growing, planting, harvesting, trimming, etc.) has increased due to inflation, causing detrimental effects for small farmers. For this reason, there have been recent movements in favor of reducing the tax and/or shifting it to an excise tax (an indirect tax on consumption of specific products or services deemed luxuries or having negative impacts, such as tobacco or fuel) in order to lessen the burden on cultivators.
In true IB economics fashion, Cecilia Zoe and Jonah used appropriate diagrams to consolidate their argument. There was a well-labeled negative externality of consumption diagram showing the effects of cannabis, a demerit good, on society, in which the welfare loss was also clearly indicated and explained by the two presenters. Also included were two other visual representations: a tax diagram and a flow chart showing the path of marijuana tax as it is collected. Jonah and Cecilia Zoe covered several important concepts present in the IB Microeconomics unit, such as elasticities, market failure, and indirect taxes, and successfully used them to illustrate a real-world example.
From the audience’s standpoint, the presentation was well done: informative without being boring and engaging without being too over-the-top. Chiara Turrettini, Year 12, a member of the audience, says, “I really enjoyed their presentation. Personally, I appreciated the diagram showing how marijuana tax travels from the cultivator to the distributor and ultimately to the CDTFA. It really helped me visualize the process.”
The atmosphere was rather casual and the presenters seemed to be relaxed and at ease. It was clear that Jonah and Cecilia Zoe were excited to present their research, and their enthusiasm quickly spread to audience members. The duo was animated and lively, consistently engaging the audience by asking questions, encouraging them to participate and share their thoughts. Even Chairman Antoine stopped by to give some input!
In terms of the presentation itself, it was clear and well explained but could have benefitted from a bit more research and specific detail. While the slides were pleasing to the eye, they seemed to lack information. Additionally, the duo could have opted for a more complicated tax diagram that better illustrated the effects on stakeholders. Nevertheless, the presentation was solid and more importantly, fun to listen to!
Overall, the presentation marked a strong start for the Economics Society, and the group is looking forward to future presentations from its members. The group appreciated the hard work done by Cecilia Zoe and Jonah.
Join the Economics Society in CH 15 every Friday from 10:30-10:55 to have the opportunity to present or listen to other presentations! The next presentation will be on the 12th of January and will be given by Karim Azhari and Claudia Mina, both Year 12. The Economics Society is hoping to see you there!
