Kunwar Bishow
Professor Burns
Date: 11/04/2016
ENGL 1301-21003
MW 9:00 – 10:20 am
Tax Revenue Collection from Marijuana
The U.S. marijuana industry will rise to $44 billion annually into the country’s economy by the end of 2020 if current business trend and legalization continue furthermore, per the data published in the 2016 Marijuana Business Factbook. Marijuana annual economy will impact its industry from $14 billion - $17 billion in 2016 to $24 billion in 4 years of the time period. Tax revenue collection from marijuana sales, especially in Colorado, Oregon, and Washington states are exceeding its projections as per the data published by the Drug Policy Alliance. In Colorado, marijuana-related tax revenue will be the total value of $129 million in 12 months by the end of 2016 by exceeding of $70 million per year estimation. In Oregon, marijuana tax revenue is gaining $4 million per month, nearly twice what regulators predicted before. In Washington, totaled $220 million for 12 months ending June 30, 2016, was collected as a tax revenue, but regulators were predicted to collect $162 million in new annual tax revenue. The marijuana business reflects that it is moving towards the mainstream as it evolves from the shadows to become a high level of respectable industry, which is providing scores of jobs, new business opportunities and making a broad ripple effect across the U.S. “We’re witnessing the emergence of a business that is about to become a massive economic force,” said Chris Walsh, managing editor of Marijuana Business Daily. “These figures, which we deem conservative, show not only how important the industry already, is to the U.S economy at large, but also how much more important it is about to become.” The figures are based on the sales of recreational and medical at the retail level as each $ spent by marijuana customers/patients, an additional $3 in economic benefits is realized, according to the Factbook. The economic and sales impact is estimated to cover wide ranges in money due to the number of unknowns inherent in the business industry (legalization, regulations, and market face). Besides the economical use of marijuana-related arrest totals have declined importantly in jurisdictions post-legalization. According to the DPA’s data, the total number of annual marijuana arrests declined by 59% in Alaska, by 46% in Colorado, by 85% in Columbia, by 50 % in Oregon, and by 98% in Washington because of the legalization of marijuana.
Chart of the week: U.S. Marijuana Industry’s Economy
Impact Could Hit $44B by 2020
The chart clearly indicates that the use of marijuana is rapidly increasing and in the same level the tax revenue is also growing which is a positive sign for the U.S government as its economic growth is becoming much stronger through Legalization of Marijuana. So, marijuana should be legalized to raise the economic growth and minimize the crime in U.S.
Work cited;
-www.norml.com/2016/10/17/tax revenue from marijuana. Accessed 11/01/2016.
-www.alternet.org/drugs/ 03/19/2016/4-signs-marijuana-business-getting-higher (Phillip Smith). Accessed 11/01/2016
-www.extract.suntimes.com/news/10/153/17309/united-states-marijuana-economy-44-billion-2020. Accessed 11/01/2016
-www.mjbizdaily.com/03/14/2016 exclusive-u-s-marijuana-industrys-economic-impact-hit-44b-2020. Accessed 11/01/2016
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