By Natalie Gray
More and more states are proposing to legalize marijuana either for medicinal or recreational use or both, and the result has already been enormous. The legal changes have generated a burgeoning industry of legal cannabis companies, including those which intend to research and develop cannabis-based medical products, those which are operating to distribute marijuana seeds online, and many others. Nowadays, more than half of U.S. states have medical marijuana laws on their registry. Some other states have legalized certain amounts of marijuana for recreational use as well.
The economic advantages of legalizing cannabis have already been obvious as the first states have moved to reform their legal positions. Overall, legal marijuana could indicate a big push for state economies and a substantial profit for both the state and the federal governments.
Impact on Tax Revenue from Legal Marijuana Industries
Better than anticipated sales of marijuana in Colorado and Washington over the past several years have produced massive tax revenues. For the last few years, the state of Colorado accumulated more than $135 million in taxes and charges on medical and recreational marijuana. Sales in the state calculated over $996 million. Purchases in North America grew 30%, to $6.7 billion, in 2016, and is forecasted to increase to $20.1 billion by 2021, according to Arcview Market Research. The local study confirms this view as well; a report from the Colorado State University-Pueblo's Institute of Cannabis Research found that the licensed cannabis businesses have contributed more than $58 million to the state's economy, principally through taxes and other fees.
California, which is much greater in area and population than Colorado, could exceed $15 billion in sales revenue and $3 billion in tax revenue. A special Senate committee in Massachusetts estimated tax revenues from marijuana sales in the scale of $50-60 million.
Legal Marijuana Creating Salary and Jobs Opportunities
Setting up marijuana greenhouses and dispensaries would be the initial step for the states that voted in favor of legal medical marijuana. These would not only generate employment but also set the ball rolling for economic exercise in the cannabis industry in these regions. In the case of states like California and Nevada where such infrastructure already exists, the economic impact has displayed more quantifiable as the industry has grown - to a point where buying and selling purple weed is common practice.
Persuading Investors On Cannabis Markets
Legal marijuana offers the opportunity of enormous advantages to economies on a local and a national scale. It also could help to ensure the investment holdings of investors across the nation and further afield as well. While cannabis remains illegal on the federal level, it is challenging for investors to capitalize on the maturity of the cannabis industry. The number of marijuana-related firms trading on public stock exchanges is little, and while investors do have the decision of working with over-the-counter markets, many of the strongest businesses in the early legal cannabis range have been based in Canada or other countries.
Should marijuana become legal on the national level, marijuana companies would be available to list their stocks on all U.S. exchanges, thereby improving liquidity and opportunity in admittance to many more investors. The growth rates for the cannabis network should recommence as they have in recent years, it's likely that investors would show a perceptive interest in the industry.
Saved Money on Federal Marijuana Enforcement
While acknowledging the economic advantages of legal marijuana, it's essential to think of the funds that might be saved as well as revenue that could be made in such a manner. Currently, federal marijuana enforcement requires several billion dollars per year. A 2013 report by the American Civil Liberties Union discovered that the costs at that time were around $3.6 billion per year. The more states that legalize cannabis, the lower the cost of enforcement would likely be; if marijuana were to be legalized on a nationwide level, these costs would probably drop considerably. If marijuana were excluded from the list of controlled substances, far fewer court proceedings concerning the substance would go to trial, resulting in fewer restraints, and, in turn, more money saved.
Considerably beneficial to medical cannabis users
Legalized marijuana similarly holds to benefit medical cannabis consumers of cannabis-based products. As marijuana becomes legal in more and more nations across the world, it's expected that the price will drop overall as a sequence of commoditization. This may not directly resemble like a piece of good news for overall tax revenue or for marijuana businesses resembling to maximize profits. However, individuals employing marijuana-based products for medical treatment would stand to benefit considerably from lower costs for these items.
There is no doubt that Marijuana legalization produces business and brings money to both the government and its people. Year after year, countries that have legalized cannabis has shown that stopping the activity of the black-market marijuana trade can generate billions of dollars in an economic impression. Even before a single cannabis product is sold, real estate brokers and entrepreneurs go to operate assembling the cannabis network and industry. Most of the money generated stays in its local treasury. Meanwhile, law enforcement resources are used everywhere other than in the pursuance of the small-time marijuana law-breaker.
Making cannabis products legally available would mean improved public health and fewer resources on the healthcare system. That would result in the more and further development of public funds being prepared for roads, schools, and other public safety projects.
About the Author
Natalie Gray is a Biochemical Engineer. She works in the Research and Development team that focuses on the design and construction of unit processes. She is a recreational marijuana supporter and her love for organic chemistry brought her to medical cannabis. She grows her own flowers, working on different projects and study everything above and under cannabis roots.