You skipped the two major problems with sin taxes:
1. Leakage. Raise the tobacco tax and folks start buying their cartons in Cheyenne; or the black market smuggles in the product.
2. Small tax base. Colorado has a $29b budget. Legal marijuana produces $100m in tax revenue; that’s $29,000m v $100m. Marijuana sales are too small compared to the economy in general. Jacking up the marijuana tax rate generates little additional revenue — you quickly run into problem # 1.
I like sin taxes and supported them as Chair of the House Finance Committee, but their utility is limited.