Cannabis: Weeding out big deficits
November 12, 2015
What does our nation’s capital Washington D.C., Alaska, Washington, Oregon and Colorado have in common? Their economy is rapidly growing due to a huge spark in the use of recreational marijuana. Among the most common, Colorado, there are four other areas where the recreational use of the plant is legal. Since then, four out of the five areas discluding Alaska, fall onto MSN’s top ten best economies in the country. There are also 18 other states that have legalized the medicinal use of cannabis as well.
There have been many stipulations that the use of marijuana will only be a taxing revenue for the federal governments. A concern about the legalization and the taxing process is that much of the revenue from this sort of taxing would pool only into federal tax revenue, disregarding the local needs. However, this has been proven to be wrong. The taxes, much like cigarette taxes, would fund projects and causes all over the country, and locally. For example, Colorado has used much of the tax revenue to fund school projects, construction and so much more. In 2014, alone, The Centennial State collected almost $63 million in recreational cannabis taxes, and the industry was worth almost $700 million.
To validate the legalization of recreational cannabis use, is Colorado’s Governor John Hickenlooper. The trial-state governor states that, “The people who were smoking marijuana before legalization still are. Now, they’re paying taxes.”
Hickenlooper concludes that before it was a black market drug that was entirely illegal. Consequently, now people are just paying for many of the local and federal needs. Colorado’s tax revenue on cannabis and alcohol in 2014, totaled to almost $112 million alone. That’s excluding cigarette taxes. This could be a life changing amount to a budget where promises often aren’t fulfilled. This may enable a solution to a state’s big deficit.
Colorado, though the trial state, has proved to be a successful industry in recreational use of marijuana. Yet, the newest state to say yes, Oregon has experienced similar economic success. As a matter of fact, KGW News states that Oregon has raked in $11 million after it’s first week of legalization. Similar to the veteran states, the Beaver State has decided to build in $9 million for tax revenue in 2017, though KGW News says, it’ll likely bring three or four times that much.
As far as I’m concerned, these trial states are proof that cannabis is a multimillion dollar business that stimulates many of America’s economies. Politician Bernie Sanders just recently introduced a similar idea to end the federal ban on cannabis. This proposal would end the familiar fight between local and federal government on the issue. Also, the aim is to build a strategic plan on the taxation of this substance comparably to alcohol and cigarette industries. While many seem to fight against the legalization of recreational use of marijuana, it’s inevitable to argue opposite to the facts that it’s stimulating economies. Consider the nation-wide legalization a motivation to stimulate the entire economy. Where people who have already been smoking cannabis, now are required to pool in money for more noteworthy causes.