In this case corporations are spending money instead of the government. Who spends money changed but the fact that an incentive to continue bad behavior is implemented is the same (and the whole point of the cobra effect). In this case the california government becomes enabler of the wage gap, the incentive is tax revenue.
What does the war on drugs have to do with this? Do you think taxing drugs is a solution? Why not legalize it without any tax, if it is harmful, require people to take it under medical supervision where they can get help with the real cause (if they choose to). That's such a straw man argument.
It's not just "poor" states that rely on taxes as revenue. Granted a small revenue stream has little power, but in this case not only would the revenue not be small but even if it was, large states are operated like large corps, this means no revenue stream is too small, it should at least be enough to cover for enforcement costs. Laws are meaningless without enforcement. If they're willing to pay the tax,guess what happens? Politicians start making unrelates promises counting on this revenue.
Bottom line, taxation is a means of revenue for a government. It is not a way of punishing people, you can't and shouldn't make punishment profitable for the punisher. That is a recipe for injustice. But if you do go ahead with this, the revenue should be used strictly for enforcement costs and to remedy the situatuon (in this case directly to the pocket of low level employees).
What does the war on drugs have to do with this? Do you think taxing drugs is a solution? Why not legalize it without any tax, if it is harmful, require people to take it under medical supervision where they can get help with the real cause (if they choose to). That's such a straw man argument.
It's not just "poor" states that rely on taxes as revenue. Granted a small revenue stream has little power, but in this case not only would the revenue not be small but even if it was, large states are operated like large corps, this means no revenue stream is too small, it should at least be enough to cover for enforcement costs. Laws are meaningless without enforcement. If they're willing to pay the tax,guess what happens? Politicians start making unrelates promises counting on this revenue.
Bottom line, taxation is a means of revenue for a government. It is not a way of punishing people, you can't and shouldn't make punishment profitable for the punisher. That is a recipe for injustice. But if you do go ahead with this, the revenue should be used strictly for enforcement costs and to remedy the situatuon (in this case directly to the pocket of low level employees).