Legalizing Marijuana Debate

The legalization of marijuana has been a hot topic in the media for many years now. There is a major divide in those who believe it should be legal, those who do not, and those who think it could be legal with modifications on the usage. The number of those who support the legalization of marijuana is on the rise with nearly 50% supporting recreational marijuana legalization, and 81% supporting marijuana legalization for medical treatment as of 2015 ("Public Support for Marijuana Legalization, 2015”). Marijuana should be legalized on a federal level because it is safer than alcohol, it will increase the economy, and there is an unfair criminalization of marijuana.

This paper will look at the benefits and drawbacks to legalizing marijuana by looking in at Colorado.The state made forty million dollars by taxed marijuana in 2014 alone, also Colorado saved countless millions because of the extremely lower amounts of marijuana arrest and court cases. It is not clear how having new recreational marijuana stores opening will affect the cannabis market, or businesses expanding around them. Gov. John Hickenlooper says that the economy is thriving with record setting numbers of tourists (73.1 million). 49 percent of those tourist said that legal marijuana influenced their decisions to vacation in Colorado. The ER’s in Colorado have also seen a rise in numbers of marijuana related cases and those cases in non-residents have almost doubled. An unexpected situation that arose from legal cannabis was the amount of electricity that is being use to grow the drug. Some cannabusinesses have to go green with solar or wind power. There are many varying views on the effects of legal marijuana have developed in Colorado since marijuana became legal in 2014.

A controversial topic often being advocated for by sitting governors is whether the legalization of marijuana is more beneficial or harmful to the economy. Marijuana, also known as weed, is a mixture of the dried and shredded leaves, stems, seeds, and flowers of the cannabis sativa plant. It’s the most widely used illegal drug in the United States, even though studies have shown results that the benefits of using marijuana for medicinal or recreational reasons far outweigh the negative matters that may be associated with its use. While marijuana is still a controlled substance under federal law, thirteen U.S. states currently have compassionate use laws in place, which allow for regulated medical marijuana use. By legalizing marijuana, the government is helping the economy by reaping medical and financial benefits, not only at the state level, but also at the federal level. Taking into account the numerous studies done with marijuana on whether it is for recreational use or medical purposes, the government cannot go wrong in legalizing marijuana because of such an impact it will have. Marijuana should be legalized for recreational purposes because it will help society economically and socially.

The topic of legalizing recreational marijuana in the United States has been a very controversial one. States such as Colorado and Washington have gone on the offensive and have legalized recreational marijuana and have enjoyed the high revenues brought in from cannabis sale. On the other hand other states have kept low profiles because they are wary of the possible negative outcomes of legalizing recreational marijuana and are using the states of Colorado and Washington as guinea pigs to see what their next course of action on this controversial topic should be. This is not only a highly debated topic among politicians, but also by the people. According to a poll conducted by the Pew Research Center 52% of Americans

The legalization of marijuana will lead to a boost to the economy. With the United States being trillions in debt, an increase in tax money would be a big help to lower the national debt. Colorado, one of the first states to legalize marijuana for recreational and medicinal uses, is showing valuable data of an increase in tax money, “In 2015, Colorado collected more than $135 million in taxes and fees on medicinal and recreational marijuana. Sales totaled over $996 million” (Krishna, Mrinalini). Now, Colorado is joined by seven other states, Washington, Oregon, California, Alaska, Maine, Massachusetts, and Nevada, in the full legalization of marijuana. With these states joining with Colorado, the United States is seeing sales “[grow] by 30%, to 6.1 billion, in 2016 and a projected 20.1 billion in 2021” (Krishna, Mrinalini). With that in mind, these sales are shared among only eight states, add another forty-two states and the rates could surpass the trillions. Considering the evidence, the act of not legalizing marijuana would be foolish.

In the preceding years, when ferocious battles were waged over the wisdom of legalization, both in direct conversations and of course, on the internet, marijuana proponents made boasts about what a major positive impact on government budgets making pot legal would have. To people familiar with economics, basic math and tax policy, these arguments seemed very weak, and that is exactly what they have been proven to be in the first years of Colorado’s new drug era.

Lantern.com reports that the first day of the year, pot sales in Colorado were more than 1 million dollars and the tax rate was about 29 percent (Jackson). According to The Huffington Post, a state like Texas could double that amount (Jackson). A study from Cato Institute also revealed that legalizing marijuana would generate at least 8.7 million dollars in federal and state tax revenue annually (Jackson). If marijuana brings in millions of dollars we need to use this money for schools education and lunches. Not only could the government use that money for schools, but use that money for military and economic purposes. Marijuana can also open many jobs because of the dispensaries, and if there were a great quantity of dispensaries employment would rise. “The ICF study estimates at least 81,000 additional direct, indirect and induced jobs in California as a result of legalized marijuana sales. It also projects an increase in total labor income by at least $3.5

Taxing marijuana would be an asset to this country’s economy by helping them with the debts, rebuilding schools, and lowering crime rates. According to Matt Ferner of the Huffington Post, since Colorado legalized marijuana the state has made $600 million in combined wholesale and retail sales (Ferner). This can be great because the United States could pay off much of its debts. That amount of money was earned through a 25 percent tax on retail purchasing, including a 15 percent excise tax, and a 10 percent sales tax (Ferner). Another asset of taxing marijuana is that the government can give some of the money to the public. Some of this money can go to schools, hospitals, and medical treatments. The rest can go to creating new

Although it has been argued by opponents of recreational marijuana that the marijuana industry will be expensive and not produce tax revenue, this statement is false as even the areas in which the revenue will go and the amounts of revenue directed towards them, have already been predicted. According to the article, "If Marijuana Is Legalized in California, Where Would $1 Billion in New Tax Revenue Go," written by Brooke Edwards Staggs, the marijuana industry will bring forth tax revenue to the state. Edwards states that the legalization of recreational marijuana will pay it’s own way as it will pay for industry taxes, licenses and fees, and for other administrative costs. The expenses for the marijuana industry will not be a burden to society. Like any industry, the marijuana industry has its costs, but the revenue made from the industry will long exceed its costs. In his article, "Prop 64: How Much Money Could Legal Weed Bring In – And Where Would It Go," Drew Bollea specifies how the tax revenue would be directed if the proposition is passed. He mentions that if proposition 64 is passed, $10 million would go to study the effects of marijuana, and $3 million would go to highway patrol for protocols on impaired driving. After that, $10 million would go to local health departments, and the rest would go to help youth

SUMMARY: In his article, "Understanding the Impact of Legalized Recreational Marijuana On State Tax Revenue," author Tony Nitti implies that the tax revenue from marijuana sales may not be as hefty as they were expected to be. Nitti develops this implication by calculating the amount of tax dollars necessary to pay for the changes that must be made to support legalized marijuana. The author's purpose is to cause the reader to question what they are being told in order to have a more informed vote.

As shops for recreational and medical Marijuana open, more purchases of the product will be made which impacts the tax revenue. An example would be Colorado (a state that legalizes Marijuana) where “In 2015, Colorado collected more than $135 million in taxes and fee on medical and recreational marijuana” (Krishna, 2017). Arcview Market Research also predicts that “Sales in North America grew 30%, to $6.7 billion, in 2016, and is projected to increase to $20.1 billion by 2021”. The legalization of Marijuana will also provide many job opportunities since a variety of different jobs will be needed that relate to Marijuana. Investopedia.Com states “A RCG Economics and Marijuana Policy Group study on Nevada says that legalizing recreational marijuana in the state could support over 41,000 jobs till 2024 and generate over $1.7 billion in labor income. The ICF study estimates at least 81,000 additional direct, indirect, and induced jobs in California as a result of legalized marijuana sales. It also projects an increase in total labor income by at least $3.5 billion”. Another way legalizing Marijuana would impact the economy positively is that the government can save money spent on enforcing the law of Marijuana being illegal. Huffington post states “Inmates incarcerated on marijuana-related charges cost U.S. prisons $1 billion annually, according to a 2007 study, AlterNet reports.” and “The government would save an estimated $13.7 billion on prohibition enforcement costs and tax revenue by legalizing marijuana”.This low risk substance saves the economy a lot of money and support it

Some people believe that through the legalization of marijuana, our nation’s tax revenue will significantly increase. On the contrary, like many other drugs, such as alcohol and tobacco, taxation of the drug will cost the nation money. For example, as stated by Marty Nemko, a psychologist and career coach, knowledgeable on the effects of legal marijuana, states that “legal pot does not yield tax dollars, it costs tax dollars”(Nemko). As with the taxation of alcohol and tobacco, tax dollars are not increased as commonly thought due to the cost of dealing with addiction, driving under the influence, and domestic abuse or illness. (Miller) Likewise, if marijuana were legalized, its accessibility would cause a total loss in tax revenue. The Drug Abuse Resistance Education estimates “legalization…[of marijuana] would bring with it additional substance abuse in [states] and long-term public costs… that would vastly exceed the ... amount of new revenue legal weed might import.” (Miller) The California Board of Equalization estimates that treating the taxation of marijuana like alcohol or cigarettes would result in a tax revenue increase of a dollar while the nation would be spending $8.95 for treatment of marijuana drug abuse related cases (Miller) Since, the taxation of legal marijuana

This amendment took effect in January of 2014 and paved the way for a billion dollar a year legal marijuana industry to take root. This industry has aided the employment market by adding thousands of new jobs to the economy. The state is also benefiting from the tax revenue generated from the production, sale and purchase of marijuana. Both medical and recreational marijuana are subjected to standard state and local taxes, as well as the taxes generated from medical and retail licensing required by the state. In 2015 the Colorado Department of Revenue reported taxes collected through Marijuana Enforcement Activity at $23,995,775. This was an increase of over $20,000,00 compared to previous years when the taxes collected on marijuana were based mainly on medicinal sales.(Appendix A) These tax revenues are going towards improving schools, scholarships, and drug awareness and abuse prevention programs. Where many were expecting acceleration in crime due to the legalized use of marijuana Colorado actually reported a 2.5% decrease in crime between 2013 and 2014. (Appendix B,

To explore the economic benefits of marijuana legalization we must first look at the amount of marijuana that is purchased by users. The White House Office of National Drug Policy reported that between 1988 and 1995, Americans spent about 7 billion dollars on the illegal substance, averaging about a billion dollars a year (Prislac, 2009). This means that annually there is a billion dollars out there that is subject to no sales tax. The national average for sales tax is 5%, so if you calculate the billion dollars being spent on marijuana, this means there is approximately 50 million dollars in sales tax that our government never gets

The United States has been involved in a failing battle versus marijuana since the execution of the Uniform Narcotic Act in the 1930's. Americans are not only squandering almost eight billion a year, Americans are losing probable income. Americans could be in a position to gain a profit of a significant amount of revenues if marijuana were to be legal and structured by the Department of Agriculture (Norml, 2014). Revenue from the tax system of marijuana purchases would extend from about two and a half billion for each year if marijuana were taxed like conventional inventory products to six billion if it were taxed like tobacco or alcohol.