Cannabis Legalization Could Generate $3 Billion in Annual Tax Revenue
September 23rd, 2014
Policy, Top News
The United States could generate more than $3 billion in annual tax revenue if all 50 states implemented a flat 15% excise tax on marijuana, according to NerdWallet, a personal finance website. These revenues do not include medical marijuana tax revenue or reduced government spending on law enforcement, which means that the real benefit could be much higher than the headline figure.
NerdWallet’s estimates used the Substance Abuse and Mental Health Services Administration’s National Surveys on Drug Use and Health to identify the number of potential marijuana customers aged 25 and older. Total marijuana sales throughout the U.S. would reach an estimated $14 billion using that data, with the 15% excise tax leading to the $3 billion in estimated tax revenue from the sales.
In the first six months of the year, Colorado collected more than $25.3 million in tax revenue from the sale of marijuana. By June, the state expects that figure to increase to $70 million, which is along the same lines as NerdWallet’s $78 million estimate. California would have the most to gain from legalization, with nearly $520 million in potential tax revenue that would almost cover its 2013 parks budget.
In 2010, Harvard economist Jeffrey Miron estimated that the U.S. could realize an additional $8 billion in annual savings on law enforcement costs if marijuana were legalized. These benefits would come from the reduced cost of housing prisoners, reduced police presence, and greater efficiency in closing other major crimes, such as violent crimes, burglaries, and other types of criminal behavior.
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
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