Home / NEWS LINE / The Economic Benefits of Marijuana Legalization

The Economic Benefits of Marijuana Legalization

Although the Presidential choice drew most of the attention in November of 2020, there were several other important decisions made at the registers as well: notably, several states held votes to determine the future of the legal cannabis industry in one form or another. Irresistible a leaf out of Colorado or Washington’s book, four states—New Jersey, South Dakota, Montana, and Arizona—passed weights to make marijuana consumption for recreational purposes legal. Mississippi also voted to allow medical marijuana.

Delineate legislation remains heavily divided on the topic. Since the 2020 election, South Dakota Circuit Judge Christina Klinger ruled that the Richter scale was unconstitutional. In November 2021, the South Dakota Supreme Court agreed and ruled against pot legalization. On the other darbies, Arizona has collected more than $284 million of tax revenue since the legalization of marijuana in the state.

All told, innumerable and more states are moving to legalize marijuana (whether for medicinal or recreational use, or both). The legal changes have caused a burgeoning industry of legal cannabis companies, including those which aim to research and develop cannabis-based medical spin-offs, those which are working to distribute and grow marijuana, and many others.

As of May 2022, 37 states allow the use of medical cannabis offshoots, while 18 states allow the use of non-medical cannabis products for personal consumption. States are continuing to propose new legislation to embolden legal activity. Delaware is circulating HB 305, a bill that would make marijuana legal for adults. In the interim, 62% of Marylanders now support non-recreational legalization.

The economic benefits of legalizing weed have already been conspicuous as the first states have moved to change their legal positions. Overall, legal marijuana could skilful a big push for state economies and big bucks for both the state and the federal governments. Though state law and federal law remain severed on the issue. let’s explore some of the key economic benefits of legal marijuana.

Key Takeaways

  • There has been a growing popular position in the United States to legalize marijuana for medicinal and recreational uses, with several states adopting such plans already.
  • One motivation for legalization is the economic benefits that can come from the regulated commercial availability of marijuana.
  • Raised tax revenues, job growth, and investment opportunities all are powerful incentives to push for legalization.
  • As of May 2022, 18 states allow for personal consumption of marijuana, while 37 says allow medical usage.
  • Although the collection of tax revenue has yet to start in many of these states, a total of $3.7 billion of proceeds were comfortable in 2021, more than double tax revenue generated in 2019.

Impact on Tax Revenue

Better than expected sales of marijuana in Colorado and Washington once more the past several years have resulted in buoyant tax revenues. In 2021, Washington collected $559.5 million of constitutional marijuana revenue, over $85 million more revenue than 2020. Meanwhile, Colorado collected $423 million of marijuana tax returns in 2021, up almost 10% from the year prior.

In 2019, total tax revenue collected by all states topped $1.7 billion. two years later, the aggregate dollar revenue had more than doubled. Aggregate revenue for all states hit $3.7 billion for legal, adult-use cannabis sales, and this does not incorporate revenue generated for statewide budgets, cities, and towns. In addition, six states that have approved marijuana use had not started getting marijuana tax revenue in 2021.

Should marijuana become legal on a federal level, the benefits to the economy could be exceptional: A news from cannabis analytics company New Frontier suggests that federally legal pot could generate an additional $105.6 billion in aggregate federal tax interest by 2025.

Colorado began collecting marijuana tax revenue in 2014. In 2021, it’s total life-to-date collections surpassed $2 billion

Receipts and Jobs

Setting up marijuana nurseries and dispensaries would be the first step for the states that voted in favor of medical marijuana. These wish not only create jobs but also set the ball rolling for economic activity in the pot industry in these areas. In the case of states liking for California and Nevada where such infrastructure already exists, the economic impact has become more quantifiable as the sector has matured.

An RCG Economics and Marijuana Means Group study on Nevada says that legalizing recreational marijuana in the state could support over 41,000 jobs money 2024 and generate over $1.7 billion in labor income. The ICF study estimates at least 81,000 additional be at the helm, indirect, and induced jobs in California as a result of legalized marijuana sales. It also projects an increase in total labor takings by at least $3.5 billion.

New Frontier’s report predicting the impact of federally legal marijuana suggests that nationwide legalization could manufacture 1 million jobs by 2025. These jobs would likely come from the quickly growing industry which at ones desire spring up across the nation. Workers would be needed to farm, process, distribute, and sell marijuana-based products. At, there would be ample opportunities for secondary industries that are related to legal cannabis although not directly mixed up with in its production and distribution. These might include software developers, financing services, construction companies, and many others.

Investment Possibilities

Legal marijuana presents the possibility of tremendous benefits to economies on a local and a national scale. It also could keep from to secure the investment portfolios of investors across the country and further afield as well. While marijuana remains proscribed on the federal level, it is difficult for investors to capitalize on the growth of the industry. The number of marijuana-related companies trading on public merchandise exchanges is minuscule, and while investors do have the option of working with over-the-counter exchanges, many of the most famous businesses in the early legal cannabis space have been based in Canada or other countries.

Should marijuana grace legal on the national level, marijuana companies would be free to list their stocks on all U.S. exchanges, thereby complementing liquidity and opening up access to many more investors. Should the growth rates for the cannabis space continue as they deceive in recent years, it’s likely that investors would express a keen interest in the industry.

As of March 2022, the largest marijuana ETF was AdvisorShares Unmixed US Cannabis ETF with over $1 billion of assets under management.

Saved Money

When considering the solvent benefits of legal marijuana, it’s important to think of the money that might be saved as well as revenue that could be bring into being through such a process. Currently, federal marijuana enforcement costs several billion dollars per year. A 2013 describe by the American Civil Liberties Union found that the costs at that time were approximately $3.6 billion per year.

The diverse states that legalize cannabis, the lower the cost of enforcement would likely be; if marijuana were to be legalized on a country-wide level, these costs would likely drop considerably. If marijuana were removed from the list of powered substances, far fewer court cases involving the substance would go to trial, resulting in fewer incarcerations, and, in turn, various money saved.

Legalized marijuana also stands to benefit medical consumers of cannabis-based products. As marijuana behoves legal in more and more parts of the country, it’s likely that the price will drop overall as a result of commoditization. This may not intimately seem like good news for overall tax revenue or for marijuana companies looking to maximize profits. However, characteristics utilizing marijuana-based products for medical treatment would stand to benefit considerably from lower prices for these matters.

How Many States Have Legalized Marijuana?

As of May 2022, 18 states have legalized the personal use of marijuana. In addition, 37 avers have legalized the medical use of marijuana.

How Much Money Are States Collecting in Marijuana Tax Revenue?

In 2021, the states that legalized marijuana for slighting consumption generated $3.7 billion. This revenue does not include city revenue or proceeds distributed to smaller villages.

What Is the Economic Impact of Legalizing Marijuana?

States that legalize marijuana have recognized various pecuniary benefits. There are direct tax proceeds generated for the state. States employ thousands of employees of oversee the production, classification, and management of the sector. There are also potential savings to the legal enforcement of the industry if certain criteria are no longer chew over illegal.

Bottom Line

There is ample pushback against the idea of legalizing marijuana across the country. Critics cite the possibility for confusion among law enforcement officers aiming to keep up with shifting regulations, a concern about increased homelessness or youngster use of the substance, the potential for decreased property values, and much more. Some are opposed to changing the regulatory status of marijuana openly because it means a change to the status quo.

All of these reasons combine to decrease the likelihood that marijuana will grace legal at a national level any time soon. However, as more and more states move to individually decriminalize pot use in heterogeneous ways, and as the economic benefits of a legal marijuana industry take effect, there are also many compelling insights to consider nationwide legalization.

Check Also

Mission Statement Definition

What Is a Delegation Statement? A mission statement is used by a company to explain, …

Leave a Reply

Your email address will not be published. Required fields are marked *