In addition to putting dent in failed 'War on Drugs,' legalization could put hundreds of thousands of people to work and generate billions in revenue
Though a key argument for legalizing marijuana in the United States is that it would put a tremendous and necessary dent in the domestic and global failure known as "the War on Drugs," a new analysis out Wednesday reveals that federal legalization could also raise more than $130 billion in tax revenue by 2025 while also creating more than 1.1 million new jobs.
The new study was published by New Frontier Data—a research and marketing firm whose stated mission is to "inform cannabis-related policy and business decisions through rigorous, issue-neutral and comprehensive analysis of the legal cannabis industry."
As the Drug Policy Alliance has shown, the criminalization regime and enforcement of keeping marijuana and others drugs illegal costs the U.S. government more than $50 billion annually—that includes the outrageous costs of imprisoning tens of thousands of people for nonviolent drug offenses.
Meanwhile, according to New Frontier CEO Giadha Aguirre De Carcer, the government would stand to do very well if marijuana, as has been shown in Washington state and Colorado, was taxed as a legal commodity. "The three most common business taxes that any standard business pays to the federal government are federal business taxes, payroll taxes and sales taxes," De Carcer explained. "If cannabis businesses were legalized tomorrow and taxed as normal businesses with a standard 35% tax rate, cannabis businesses would infuse the U.S. economy with an additional $12.6 billion this year."