New Study Details What Each State Gains to Make if U.S. Legalizes Recreational Cannabis

A new study released by the financial group Nerd Wallet has detailed what each of the 50 U.S. states gain tomarijuanamoney make if the nation legalizes the sales of recreational cannabis.

According to the study; “The U.S. stands to gain, according to our calculations, $3,098,866,907 in state and local taxes per year — that’s more than twice the entire budget of the Small Business Administration in 2013. California could gain the most from taxes on sales of marijuana. The state stands to take in $519,287,052, which almost covers the 2013 budget for the California Department of Parks and Recreation.”

To estimate this value, the group “used data from the Substance Abuse and Mental Health Services Administration detailing the percentage of marijuana smokers ages 25 and over in each state and multiplied that percentage by the state’s population older than 25 to get the number of users in each state. We then took the state’s users as a percentage of total users over 25 in the U.S. and multiplied that by the total marijuana market estimate (sized at $14 billion by Harvard University economist Jeffrey Miron) to determine the market size in each state.”

To calculate the tax rate, they “used state and local tax rates compiled by the nonpartisan Tax Foundation to estimate the amount each state would earn in sales tax revenue. We added in a 15% excise tax (a tax levied on a specific good, such as cigarettes or gas), which is the excise tax in Colorado for marijuana purchases. ”

You can find the full study by clicking here.

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7 thoughts on “New Study Details What Each State Gains to Make if U.S. Legalizes Recreational Cannabis”

  1. Thank you Federal government for allowing my parents to die from cancer knowing they could have been saved or less miserable. I hope you suffer the same!

  2. I think marijuana should be legalized because it is alot better for health reasons than tobacco and plus the taxes alone could help with the U.S. debt problem! Also it gives law enforcement more of a focus on the dangerous drugs on the streets! It is all just simple common sense! Marijuana is all natural, the other drugs are all some way or another chemically made!

  3. I live in the state of Ms and wish we could past the law but the government is so stupid they won’t even give it a thought and people like myself deal with pain all day every day and they just don’t care about the millions of people this could help . Because they don’t care about anything but lieing to We the people that means nothing to the government and this pisses me off so very many people that this could help but they don’t care about we the people it’s how can we screw the people I hate congress they set around getting paid for doing nothing and would never take a pay cut for the help of the state are USA they spend money on anything they want but we can’t buy food are pay for gas are Rx that we need to live why because that would mean they would have to take a pay cut are not eat that $ 2,500 a plate lunch that you know dam well ant blogia and cheese and we pay for that I was raised to believe that the government would always be on our side because in GOD we trust and I do praise Jesus but have no faith in this president are the government they care zero about us We the people I know now what U S A stands for now USE , STEAL , ALWAYSFrom the people USA this saddens me I hate knowing this is exactly what we are living for now no amaricain dream wish you would have just told us the truth Bend over tax payers so we can stick it up your asses and their are people that voted that stupid ass man in office not once but twice you people are not smart at all you did this to us the people how do you feel now that he’s showen his real color

  4. WE NEED TO PUSH THIS LAW TO THE FULLEST HELP PPL WE DONT NEED PILLS TJAT HAVE MASSIVE SIDE EFFECTS WE LIVE IN A MEW ERA THIS IS JIST WHAT HAPPEND WEN ALCOHOL WASNT ALLOWED BUT NOW EVERYONE DRINKS COME ON NOW IF THAT IS LEGAL AN PPL. DIE OFF OF ALCOHOL AND PILLS MARIJUANA SHOULD MOSDEF MBE LEGAL YOUVE NEVER HEARD OF A STONED DOMESTIC ABUSE CASE EVER BEER AMD LIQUOR ON THE OTHER HAND HAPPENS ON THE DAILY

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