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Economic Impact Of Legalizing Marijuana

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My topic is on the economic impact of legalizing marijuana. This is a very talked about topic in the nation and at some point, will eventually become legal on a federal level. There are so many debates and arguments out there about why it will or will not become legal, but nobody ever really discusses the true reasons it has not become legal. We can’t argue that it’s a drug and that’s what is stopping it, or else there would be no legal sales of alcohol or tobacco. Money alone is what is prolonging the inevitable. How much can be made from the sales and what do the profits go to if any?
I am writing about this because when marijuana does become legal, it will be a major event for the United States. This will be a talked …show more content…

Many liked the idea of legalization and many were against it for so many different reasons. Throughout the last decade, we have seen individual states legalize pot for medical or recreational sale. What has this done for those states on a financial level?
Colorado was the first state to legalize marijuana for recreational use and their states finances have improved vastly since. In 2014 to 2015, the marijuana tax and fees revenue in Colorado brought in a total of $211,252,961. This amount was generated in the course of 2 years, and every one of those dollars goes directly back into the bottom line of Colorado’s budget. In a study done by Jon Gettman (2007) “Lost Taxes and Other Costs of Marijuana Laws”, he estimates that the tax rates put on pot could bring in over $6.2 billion annually for the …show more content…

The industry needs to prove the income can help create a stream of continuous revenue that can help lower tax rates and help reduce the deficit. The Congressional Joint Committee of Taxation (JCT), are the ones responsible for estimating if the generated revenue of the marijuana industry will be enough to make it worthwhile for the government. Congress will ask the JCT how much revenue would generate from a change of law and the JCT will give Congress a number. This does not include any other information as to how the number was generated. The JCT does not use models or charts to reach an estimate; instead use professional data collected pertaining to individual states

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