Marijuana Enforcement: A Case Study

As of 2012 Canada’s national debt has reached over $1.2 trillion dollars (Lammam et al, 2014). The state of our countries financial situation is as important to one Canadian as it is the next. Whether a person is retiring, applying for a mortgage or a student loan the Canadian economy affects everyone. Legalizing marijuana in Canada opens the door to a boost in taxation dollars that the Canadian economy and country as a whole could utilize. If, for example, marijuana was taxed like tobacco, there would be increased revenue from federal and provincial taxes as well as HST (Latif, 2014). Not only would the legal sale of marijuana boost the economy, but the jobs that would be created in the process would also have a positive effect. Canada currently has an unemployment rate of 8.1% nationally, with rates even higher in some provinces (Sen & Pierard, 2011). The legal sale and distribution of marijuana would create jobs in the transportation, growing and processing sectors but also areas such as marketing, advertising and serving. Marijuana users would contribute economically by purchasing the product and paying taxes. Not only users, but new businesses would also add to the Canadian economy including workers who run these businesses by paying taxes on their pay checks. Legalizing marijuana creates a new supply-demand market that the Canadian government could

Both medicinal and recreational uses of cannabis have been considered for legalisation, however is there a gap within the economy for it? Both recreational and medicinal use of marijuana should be legalised within Australia, as it will boost the economy and generate a new source of revenue. Even though it is frowned upon in modern society, personal bias must be extracted and look at the benefits from a monetary value. According to the Institute for Economic and Research, up to £900m could be raised annually through taxation of regulated cannabis market within the UK. Meanwhile the UK is currently spending £361 million every year on policing and treating users of illegally traded and consumed cannabis. Then, there is the job creation potential. In Colorado, which legalised marijuana at the beginning of 2014, 10,000 new jobs have been created for the marijuana industry: growing and harvesting crops, working in dispensaries, and even making and selling equipment. Crime has also fallen in the state: in the first three months after legalisation in Denver, the city experienced a 14.6 % drop in crime and specifically violent crime is down 2.4 %. Assaults were down by 3.7%. This reduction led to further savings and allowing stretched police forces to concentrate on more serious issues. Additionally, by removing criminal penalties for certain marijuana-related offenses, thousands of individuals will avoid the collateral consequences associated with a criminal record. The state is estimated to potentially save $12-40 million over the span of a year simply by ending arrests for marijuana possession. The government and legal system will benefit from this as the money used to prosecute marijuana offenders will be saved and possibly be invested into; infrastructure, health system or education system

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.

For the sake of building off the previous entry, I would like to incorporate a couple of marijuana related legal statistics from Steven Nelson’s article Police Made One Marijuana Arrest Every 42 Seconds in 2012. The Federal Bureau of Investigation released data on the crime figures for drug-related crimes in 2012 and it showed that a staggering 749,825 people were arrested for marijuana related offenses; that is one arrest every 42 seconds. It also accounted for 48.3 percent of all drug arrests. Even with the recent upsurge in public support for the liberation of the drug policy, police arrested the same number of people in 2012 on pot-related charges as they did in 2011. These numbers have led many people to begin forming advocacy groups geared to decriminalize the drug. Dan Riffle, the director of

is wasted on a cause that there seems to be no end to.” In 1989, a

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.

Cannabis has been illegal since the Marijuana Tax act of 1934. Yet out of a population of 284 million American citizens, 70 million Americans claim to have smoked cannabis at some point in their lives. Prohibition of cannabis is therefore apparently ineffective at changing the habits of a population, just as prohibition of alcohol was ineffective in 1919-1933. Making otherwise law-abiding citizens fugitives does nothing more than fill the prisons and alienate the populace from their government. In fact the total cost to taxpayers of solely marijuana-related incarceration (in local, state, and federal prisons and jails) of 15,400 people exceeds $1.2 million per year.

One of the primary focuses of America 's War on Drugs is the controversial drug Marijuana. Marijuana remains the most widely used illegal drug and stirs up constant debate everywhere. According to the United Nations Office on Drugs and Crime from the World Drug Report 2004 an estimation of about 4 percent of the world’s adult population (162 million) consume marijuana annually (156). For thousands of years human beings have attempted to find ways to get passed the struggles of everyday life. With the pain of the world stopping people from enjoying simple pleasures, sometimes there is a need for help. Marijuana brings millions of people relief from pain flet on a day-to-day basis. This completely natural plant which previously helped so many people has puzzled the leaders of our nation for a long time. The effects of the drug on a individual level is what 's prevented the product from being legalized. Many issues involving this plant, like the speculation of it being a gateway drug, has put yet another block on its legalization. Even with the drugs known speculations, the benefit that it brings to the table most definitely out way its disadvantages. Marijuana can also alleviate several symptoms associated with cancer and Aids treatments and disorders. While Marijuana is effective as a medicine, it is also extremely lucrative. The economic benefits that Marijuana brings to the table are endless. Non legalization is a waste of societies hard earned money to continue to enforce

“Canada’s illegal marijuana industry has been valued at over $7 billion annually, with some estimating $21 billion” and Akpata also mentions that the war on drugs has cost over billions of tax money (14). Last, Akpata insists that “Canada is a marijuana exporting country and has some of the highest rates of consumption of marijuana on earth” (15). Akpata in his research mention that, “Colorado brings in roughly US$10 million per month from a marijuana tax—more than comes in from alcohol sales” (14), he suggests that if government legalize weed in Canada and put the tax on its sale then they will able to generate a huge amount of profit because Canada is the largest country of hemp consumers in the world. It is also estimated that “B.C. would reap $500 million a year in taxation and licensing revenues from a liquor-control-board style of government regulation and sale” (MacQueen 21). Furthermore, Macqueen in his research “predicts a $12-million saving in enforcement costs in the first year, rising to $40 million “as courts and prisons adapt to fewer and fewer violators.” It predicts combined savings and new revenue” will approximately save over $60 million of tax money in British Columbia and this figure will estimate to get double in 2017

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 phrase “war on drugs” in California incorporates a great matter of financial spending that attempts to enforce marijuana prohibition. Every year, more than $51,000,000,000 is spent annually in the U.S. on the war on drugs according to Drug Policy Alliance. Our national debt only contains three more zeros. In June 1971, President Richard Nixon formally declared a "war on drugs" that would be directed toward eradication, interdiction, and incarceration. However, the U.S. has spent over $1 trillion trying to enforce President Nixon’s declaration. Legalizing marijuana would save law enforcement resources which in California is in the range of $280 – 370 million per year with roughly $215 - $300 million associated

Enforcing cannabis laws costs an estimated $10-15 billion annually (Nadelmann “An end to marijuana prohibition”). This enormous amount of money could be used for many other things, but instead is being wasted. Marijuana prohibition is a failure. In fact, even though marijuana remains completely illegal it is the nation’s leading cash crop. Nearly $36 billion worth of cannabis is grown each year in the US. This exceeds corn, grossing $23 billion, soybeans making $17.6 billion, and hay which earns $12.2 billion annually. California alone grows $13.8 billion worth of cannabis annually (Glaister). Drug laws have successfully reduced the flow of marijuana into the US. This success is the main reason for the colossal amount of cannabis produced here. Large amounts of marijuana are now grown on U.S. soil because of the risks involved in transporting it across borders. If prohibition were effective, it would not force marijuana to be the

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

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.

The authors are a research economist and Vice President from the organization, which contributes to their biases on this issue. The authors argue that the marijuana industry could provide $28 million in tax revenues. The authors also argue that the taxation of marijuana will also reduce the societal risk of engaging in the illegal marijuana trade.