GOP senator pushes federal cannabis “regulatory construct” (Newsletter: October 15, 2025)

Michigan marijuana tax increase isn’t a headline so much as a bar tab that keeps growing after last call. The state’s governor signaled sympathy for industry pain over a new wholesale tax, but sympathy doesn’t keep the lights on. In the Michigan cannabis market, every percentage point at wholesale ricochets down the line—cultivators squeeze yields, processors cut corners they swore they’d never cut, retailers turn margins into mist. You feel it on the shelf, then in the street, where the illicit guy two blocks over still smiles and says, cash only. This is cannabis taxation playing out in real time: the state wants legal cannabis revenue; the industry wants to survive the winter; consumers just want a fair shake and a flower that doesn’t taste like austerity.

Here’s the ugly math. A wholesale levy in a deflationary market is a tax on gravity. Prices have fallen for years; a new bite at transfer only accelerates consolidation. Small operators will do the familiar dance—trim staff, renegotiate rent, delay equipment upgrades, pray for a mild shoulder season. When governments talk about marijuana policy reform, they love to say words like “stability” and “predictability.” But in practice, a sudden tax hike can turn a stable operation into a scramble. Cities and counties are hooked on cannabis dollars for roads and roofs; the state is juggling broader budget pressures; operators are stuck in the vice between both, their “legal” advantage eroded by bureaucracy and bargain-hunting. If you want a federal model, imagine a clean excise, transparent enforcement, and sensible thresholds—something like the regulatory “construct” some on Capitol Hill keep teasing—then compare it to the fragmented reality out here.

In the short term, expect:

• Price creep at retail, especially on value eighths and pre-rolls.
• Wider gaps between top-shelf brands and bargain bins as mid-tier gets hollowed out.
• More distressed licenses on the market by spring, with roll-ups licking their chops.
• A quiet migration of price-sensitive buyers back to the legacy trade.

The lesson lands the same across markets: tax design shapes behavior. Do it bluntly, and you don’t raise just revenue—you raise hell.

And while Michigan fights the ledger, the courts are playing bouncer at the door. The Supreme Court just thinned its stack of petitions over the federal ban on gun ownership for marijuana consumers, passing on one case while signaling it may hash out others soon. The message is cold and familiar: keep waiting. In the meantime, life goes on in legal states where gun safes and stash jars share the same closet. If you want the latest turn in that saga, pour a coffee and read Supreme Court Denies One Case On Gun Rights For Marijuana Consumers, But Justices Will Discuss Several Others This Week. On the West Coast, California’s governor just stamped “return to sender” on a bill that would have let certain microbusinesses ship medical cannabis via common carriers. No porch drops for patients, at least not this season. Good intentions, meet a political appetite that prefers slow-cooked to sous vide.

Meanwhile, the culture keeps evolving—always a step ahead of policy. A new national study says blunt smoking increased significantly from 2015 to 2022, with the jump showing up in places you might not expect: among women, older adults, and people who don’t drink alcohol. The market hears that and pivots without waiting for a task force: more cigar-leaf wraps, terp-heavy flower, marketing that straddles nostalgia and wellness. Dig into the details here: Marijuana Blunt Smoking Has ‘Increased Significantly’ In The U.S. In Recent Years, Study Shows. Then look at Ohio, where a governor’s executive order just put so-called intoxicating hemp products on ice, at least for now. Shops are bracing. Employees wonder what tomorrow looks like. Consumers will adapt the way they always do—substituting, stockpiling, or crossing borders. For the on-the-ground view, see As Ohio’s Intoxicating Hemp Product Ban Takes Effect, Business Owners Brace For Impact. Every clampdown redraws the map—and pushes demand somewhere else.

Not all the movement is defensive. In North Carolina, a rare bipartisan chorus is warming to psychedelic therapies for veterans, with one Republican saying the state could lead the nation. That’s not just rhetoric; it’s a recognition that our patchwork drug policy has left too many people behind, especially those who wore the uniform. The idea that the South could become a launchpad for careful, compassionate access is the kind of plot twist this policy story needs. Want the receipts? Start with North Carolina Could ‘Lead The Nation’ In Expanding Psychedelic Access For Veterans, GOP Senator Says. Back in Michigan, the tax fight will come down to whether policymakers can see beyond the quarter and into the decade: structure revenue without strangling the ecosystem, or watch the illicit market reclaim the customers you wooed out of the shadows. If you’re navigating this maze as a consumer, keep it simple—support operators who do it right, and when you’re ready to explore the cleanest high in the room, step into our shop: https://thcaorder.com/shop/.