Should Marijuana Be Legalized?

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.

Marijuana is amongst one of the most disputable subjects in political issues. It is the most exploited drug in the United States and can even be around the globe. Marijuana is the main source of substance reliance other than alcohol in the United States. Numerous groups in recent years have come forward and claim that marijuana use has been beneficial with numerous medical conditions. In fact, it has helped numerous people with diseases, for example, Glaucoma, Cancer, and any other physical or mental pain. Medicinal cannabis should be legalized in Florida, but should be regulated accordingly. The clear majority trust that marijuana use would be more beneficial if it was not criminalized but most still believe that the government should keep it as a controlled substance. In 2008, 4 million out of the 7 million individuals, ages 12 and older, characterized as having a reliance or abusing marijuana. This implies that two out of every three Americans experiencing any substance abuse have developed marijuana reliance. The legalization of marijuana in the United States such an issue for so many individuals today. Some believe that marijuana should not be legalized in Florida because of physical health, mental health, effects of driving under the influence of marijuana, and increase in use. Others believe that is it marijuana should be legal because of its harmless if used in moderation, limits of personal freedoms, and potential FDA regulations.

“According to the Colorado Department of Revenue, the regulated marijuana market generated more than $156 million in state tax revenue and license fees in FY 2015-2016.” (The Impact of Legalization in Colorado,2017). The amount recognized in the quote was not including local taxes. The taxes generated from recreational marijuana use can be used for the state of Colorado to spend on many valuable things in the state. Such as schools, public transportation, or natural parks. This benefits the economy by creating more money for the state to spend and putting more money into circulation.

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

According to Bloomberg, Washington is expected to pull in $154.6 million in taxes alone, which is expected to eventually exceed $1 billion after 4 years. Oregon began collecting a 25 percent tax on recreational marijuana sales. Just by one month alone, marijuana sales from 309 dispensaries were able to bring in a rough estimate of $14 million. The Beaver State has projected the market is worth nearly $300 million. A California-based cannabis- focused agriculture company called Terra Tech saw a revenue growth of 103 percent in the first quarter of 2016 alone.

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

In a study by New Frontier data, it is predicted that after the nationwide legalization of recreational marijuana, the marijuana industry will create around $132 billion in tax dollars in the next decade. In the 2017 fiscal year, the federal deficit was $666 billion dollars. Tax revenue from marijuana sales can lessen the deficit if legalized nationwide. Colorado is just one example of this – from January 2014 to May 2017, its tax revenue from marijuana exceeded $500 million. Colorado used the extra revenue mostly for K-12 education, but also for public health initiatives and infrastructure projects. Brian Vicente from the Vicente Sederberg Law Firm, which specializes in marijuana law, says “the impact is really felt at the local level. Some counties have done 20 years of infrastructure work in just one year's time,” he said. “They've provided lunch for kids who need it.” These things are crucial to Colorado’s well-being, but also stimulate the economy. In another state where recreational marijuana, Washington, the revenue from marijuana income and processing fees was $319 million in the 2017 fiscal year. In Washington, the excise tax is 37% for retail sales of marijuana. This high tax rate contributes to the substantial revenue from Washington’s marijuana industry. Washington uses $3 million of its revenue from recreational marijuana to fund substance abuse prevention programs and drug education. The

Since Washington and Colorado have legalized Cannabis it is estimated that it will bring in billions of dollars annually. A study done at Cato institute predicted that Colorado would generate $8.7 billion in federal and state tax

Revenue that can potentially be generated from marijuana taxes is estimated to be more than $28 billion for federal, state, and local governments. A federal tax similar to the one on tobacco could generate up to $500 million per year and a 10% sales tax has the potential to bring

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.

The legalization of marijuana has had a substantial effect on each state’s tax revenue and economy. In Colorado, the extra tax money from the marijuana industry has gone to boost public schools statewide. Other things that money could go towards include: roads and infrastructure, sports facilities, and various kinds of social insurance. According to Tanya Basu, author of “Colorado Raised More Tax Revenue from Marijuana than Alcohol” on Time.com, the state of Colorado had gained around $70 million in marijuana tax revenue for the fiscal year ending on June 30, 2015.

If marijuana is legalized it should be regulated and taxed similarly to alcohol and tobacco. As of now, marijuana is fully legal in Colorado, Oregon, Alaska, Washington State, and Washington D.C. According to a 2010 survey from Cato, “Legalizing marijuana would generate eight billion, eight billion, seven hundred million, dollars in federal and state revenue annually.” (Huffpost,2013). In 2014, Colorado legalized marijuana for recreational use, as of now Colorado marijuana industry is worth one billion dollars. Legalizing marijuana would benefit states by providing them with much-needed tax revenue. According to Colorado Department of Revenue, in the first two months, the state collected six million dollars in tax revenue. (CDOR,2015) According to Colorado Department of Revenue, in 2015, the state saw nine billion, nine hundred sixty-two million, dollars in sales of marijuana. Colorado collected more than one hundred thirty-five million, dollars in taxes from the marijuana sales in 2015. (CDOR,2016) Washington State plans to raise nearly two hundred million dollars in marijuana tax revenue and fees in the next four years. Colorado uses a portion of their marijuana tax revenue to fund their

If the United States were to legalize marijuana, then our country would reap the benefits. “A mature marijuana industry could generate up to $28 billion in tax revenues for federal, state, and local governments, including $7 billion in federal revenue: $5.5 billion from business taxes and $1.5 billion from income and payroll taxes(Marijuana Tax Legalization).” This fact given from TaxFoundation.org shows how if the marijuana industry could help reduce the Tax debt within our country. Many other drugs such as tobacco and alcohol are permitted to be used within our country but do not give us the same opportunity as legalizing marijuana does. “A federal tax of $23 per pound of product, similar to the federal tax on tobacco, could generate $500 million per year. Alternatively, a 10 percent sales surtax could generate $5.3 billion per year, with higher tax rates collecting proportionately more(Marijuana Tax Legalization).” Marijuana can and should be used to this country full potential in eliminating tax

From a fiscal standpoint, the legalization of marijuana is nothing but beneficial. California, Washington, and Colorado have all legalized to some extent, and are already raking in taxes on the purchase of this, now legal,

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