Nonetheless, the benefits of legalization seem both substantial and undeniable, and deserve to be taken seriously. These would not only create jobs but also set the ball rolling for economic activity in the pot industry in these areas. The ICF study estimates at least 81, additional direct, indirect and induced jobs in California as a result of legalized marijuana sales.
On the other side of the ledger, legalization would save the considerable economic and social costs of the current criminal prohibition system.
One factor that could significantly expand the demand for legal cannabis in the future would be the development of mild cannabis beverages like bhang, which traditionally constituted the bulk of demand in India. State and local programs are probably of similar or greater magnitude: Legalization of cannabis would also divert demand from other drugs, resulting in further savings.
Impact on Tax Revenue Better than expected sales of marijuana in Colorado and Washington over the past year have resulted in buoyant tax revenues. Unlike excise taxes, sales taxes would be proportional to final retail price, including the added markup for premium brands.
In addition to excise taxes, states could impose sales taxes on cannabis. Delivered twice a week, straight to your inbox. The obvious question remains what portion of consumption would be absorbed by home growers.
The economic benefits of marijuana legalization are summarized in Table 2. Get a free 10 week email series that will teach you how to start investing. In addition, legalization would create numerous revenue-generating spinoff industries, such as coffee houses, gardening equipment and paraphernalia.
Bottom Line Though the industry certainly has good projections, those might soon dampen if Jeff Sessions rescinds the Cole Memo, which guides prosecutors on how to prioritize marijuana laws.
Just like alcohol, it can be expected that marijuana would often be sold for substantially more than its minimum price: The city of Amsterdam, with a million people, boasts coffee houses retailing cannabis.
Income and Jobs Setting up marijuana nurseries and dispensaries would be the first step for the states that voted in favor of medical marijuana. Florida, Arkansas and North Dakota voted to allow medical marijuana while Arizona defeated that move.
In case of states like California and Nevada where such infrastructure already exists, the economic impact is more quantifiable as the sector matures.
These figures may well be low, since the Household Survey underestimates actual use. Trading Center Want to learn how to invest? S, this would amount to over 60, retailers andjobs. Regardless, there is big opportunity. These figures are somewhat lower than those sometimes bandied about in public discourse, as both legalizers and prohibitionists have a tendency to make consumption estimates that are in our opinion inflated.
That is the carrot that dangled before many states. Home growing would naturally be most attractive to heavy users with little money, who probably account for a major share of consumption. As we have seen, it is probably hopeless to limit personal use cultivation.Nov 07, · The states could see a major economic boon because of the legalization.
Legalization Could Boost The Economy. k. prohibition enforcement costs and tax revenue by legalizing. Pot proponents are arguing that legalizing marijuana may allow state budgets to get really high on the added tax revenues and law enforcement savings.
The Economics of Marijuana Legalization. more and more anti-drug war warriors point to the economic benefits of making pot legal.
Marijuana by the Numbers. Revenues From Legalization Assuming a tax of $ or $1 per joint, we can venture a rough estimate of the revenues that could be raised from legalized cannabis.
The economic benefits of marijuana legalization are summarized in Table 2. The total direct savings to government in taxes and enforcement come to some $8 - $16 billion per.
How legalizing pot could save America's economy. Legalizing marijuana on a federal level would provide economic benefits for the United States in. Apr 10, · As Colorado grapples with the logistics of legalizing marijuana, lessons are being drawn from the medical marijuana industry.
Winding down the war on drugs: Towards a ceasefire. The economic benefits of legalizing weed could mean a big push for state economies and big bucks for both the state and the federal governments.
Impact on Tax Revenue.Download