Economy, economy, economy - it’s the hot topic of conversation, and everyone has an idea on how to improve it. Some want to raise taxes, others want to add more taxes, and still more want to cut funding to federal aid programs.

But not California.

California, one of the first states in the nation to legalize medicinal marijuana, has a new plan: Legalize the drug completely, and then tax its sales.

According to a staff analysis from the Board of Equalization, Californians use approximately one million pounds of marijuana each year, which translates to roughly...