Report: Legal Marijuana Could Generate $132 Billion in Taxes and 1 Million Jobs
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What’s the story?
Legalizing marijuana nationwide could generate $131.8 billion in federal tax revenue and add 1.1 million jobs in the next decade, according to a new study.
Why does it matter?
“When there are budget deficits and the like, everybody wants to know where is there an additional revenue stream, and one of the most logical places is to go after cannabis and cannabis taxes,” said Beau Whitney, a senior economist at New Frontier Data, the cannabis analytics firm that compiled the report.
The study shows that legalizing pot across the U.S. would add $131.8 billion to the Treasury by 2025—this would come from a 15 percent retail tax, 35 percent business tax, and payroll tax deductions. Sales tax alone on legal weed would generate $51.7 billion between 2017 and 2025.
New Frontier Data also found that legalizing cannabis in all 50 states would immediately add 782,000 jobs to the economy, with the number increasing to 1.1 million by 2025.
Critics of national marijuana legalization dismissed the report.
"Every $1 in revenue costs $10 in social consequences,” said Kevin Sabet, president and CEO of Smart Approaches to Marijuana, an anti-legalization group. Sabet told the Statesman Journal that down-the-road costs – including car and workplace accidents and mental health problems – outweigh any tax and employment benefits.
Earlier this month, Attorney General Jeff Sessions announced the Justice Department was ending the policy that allowed states to relax restrictions on recreational pot without the threat of federal interference.
What do you think?
Are you in favor of legalizing pot in all 50 states? Or do you agree with Sessions’ move? Hit Take Action and tell your reps, then share your comments below.
—Josh Herman
Related Reading
House Dems. Introduce Bill to Legalize Marijuana and Provide 'Restorative Justice'
Sen. Elizabeth Warren Plans Legislation to Protect States' Pot Rights
(Photo Credit: OlyaSolodenko / iStock)
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