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The economic downturn has resulted in reduced tax revenues for the states, creating significant budget problems. States are now with faced with deciding about state employee layoffs, pay cuts, tax increases and service cuts.
One simple. relatively popular, and basically pain-free way to alleviate a state’s budget problems that is only now starting to get some attention is legalizing, taxing and regulating marijuana.
Recently, two states, California and Washington, have put out official analyses of the likely revenue that would be generated from marijuana legalization. The California State Board of Equalization (PDF) determined a marijuana legalization and taxation bill would result in $1.38 billion in new revenue, about $37 per person. The Washington State Office of Finical Management found a legalization and taxation bill in that state would generate about $180 million in state revenue, about $26 per person, plus millions in local taxes.
These two figures were used to create a chart with very rough estimates about how much each state could generate by taxing and regulating marijuana in ways similar to alcohol, based on population:
| State | Population | Projected Revenue Assuming $26 per Person (Washington) | Projected Revenue Assuming $37 per Person (California) |
|---|---|---|---|
| Alabama | 4,779,736 | 119,493,400 | 176,850,232 |
| Alaska | 710,231 | 17,755,775 | 26,278,547 |
| Arizona | 6,392,017 | 159,800,425 | 236,504,629 |
| Arkansas | 2,915,918 | 72,897,950 | 107,888,966 |
| California | 37,253,956 | 931,348,900 | 1,378,396,372 |
| Colorado | 5,029,196 | 125,729,900 | 186,080,252 |
| Connecticut | 3,574,097 | 89,352,425 | 132,241,589 |
| Delaware | 900,877 | 22,521,925 | 33,332,449 |
| Florida | 18,801,310 | 470,032,750 | 695,648,470 |
| Georgia | 9,687,653 | 242,191,325 | 358,443,161 |
| Hawaii | 1,360,301 | 34,007,525 | 50,331,137 |
| Idaho | 1,567,582 | 39,189,550 | 58,000,534 |
| Illinois | 12,830,632 | 320,765,800 | 474,733,384 |
| Indiana | 6,483,802 | 162,095,050 | 239,900,674 |
| Iowa | 3,046,355 | 76,158,875 | 112,715,135 |
| Kansas | 2,853,118 | 71,327,950 | 105,565,366 |
| Kentucky | 4,339,367 | 108,484,175 | 160,556,579 |
| Louisiana | 4,533,372 | 113,334,300 | 167,734,764 |
| Maine | 1,328,361 | 33,209,025 | 49,149,357 |
| Maryland | 5,773,552 | 144,338,800 | 213,621,424 |
| Massachusetts | 6,547,629 | 163,690,725 | 242,262,273 |
| Michigan | 9,883,640 | 247,091,000 | 365,694,680 |
| Minnesota | 5,303,925 | 132,598,125 | 196,245,225 |
| Mississippi | 2,967,297 | 74,182,425 | 109,789,989 |
| Missouri | 5,988,927 | 149,723,175 | 221,590,299 |
| Montana | 989,415 | 24,735,375 | 36,608,355 |
| Nebraska | 1,826,341 | 45,658,525 | 67,574,617 |
| Nevada | 2,700,551 | 67,513,775 | 99,920,387 |
| New Hampshire | 1,316,470 | 32,911,750 | 48,709,390 |
| New Jersey | 8,791,894 | 219,797,350 | 325,300,078 |
| New Mexico | 2,059,179 | 51,479,475 | 76,189,623 |
| New York | 19,378,102 | 484,452,550 | 716,989,774 |
| North Carolina | 9,535,483 | 238,387,075 | 352,812,871 |
| North Dakota | 672,591 | 16,814,775 | 24,885,867 |
| Ohio | 11,536,504 | 288,412,600 | 426,850,648 |
| Oklahoma | 3,751,351 | 93,783,775 | 138,799,987 |
| Oregon | 3,831,074 | 95,776,850 | 141,749,738 |
| Pennsylvania | 12,702,379 | 317,559,475 | 469,988,023 |
| Rhode Island | 1,052,567 | 26,314,175 | 38,944,979 |
| South Carolina | 4,625,364 | 115,634,100 | 171,138,468 |
| South Dakota | 814,180 | 20,354,500 | 30,124,660 |
| Tennessee | 6,346,105 | 158,652,625 | 234,805,885 |
| Texas | 25,145,561 | 628,639,025 | 930,385,757 |
| Utah | 2,763,885 | 69,097,125 | 102,263,745 |
| Vermont | 625,741 | 15,643,525 | 23,152,417 |
| Virginia | 8,001,024 | 200,025,600 | 296,037,888 |
| Washington | 6,724,540 | 168,113,500 | 248,807,980 |
| Washington, D.C. | 601,723 | 15,043,075 | 22,263,751 |
| West Virginia | 1,852,994 | 46,324,850 | 68,560,778 |
| Wisconsin | 5,686,986 | 142,174,650 | 210,418,482 |
| Wyoming | 563,626 | 14,090,650 | 20,854,162 |
These are just rough projections to give a ballpark impression of how much potential new revenue is at stake. Obviously, the exact amounts for each state would vary significantly based on several factors like demographics, exact tax rates, consumption rates, design of the law, and rules in surrounding states. Ideally, comparing these figures to the current budget deficits will spur looking at taxing and regulating marijuana as an alternative to some current proposals like massive teacher layoffs.
Interesting Wisconsin could probably generate between $140-210 million from taxing and regulating marijuana, which would be sufficient to coverthis year’s $137 million shortfall that Republican Gov. Scott Walker is using as an excuse to take away collective bargaining for some public sector unions.
3 Comments
Wisconsin was the leading hemp producer in the 1920s and 1930s, and the only producer in the 1950s.
We’d lead again, at least in the early going, as our existing paper mills are ready for retrofit to hemp blends, much quicker than building new factories for other hemp products from scratch.
Cannabis prohibition is doomed to failure, as it is based on a series of total “un-realities”, which no amount of repression can make “real”. Cannabis is NOT physically addictive as it lacks a documented physical withdrawal syndrome, the so-called “gateway drug theory discredited as invalid, much touted by the DEA drug Marinol is not at all the same as medicinal cannabis, smoking Cannabis does not increase the risk of lung cancer, and cannabis use suppresses violent behavior. These are REALITIES! To further say say that Cannabis plant does not have medicinal properties is simply delusional and is a complete “break” with “reality”. If anti-Cannabis repression by the DEA and its allies were to be intensified, the rate of alcohol, cocaine, opiates, other hard drugs, alcohol, and dangerous prescription drugs would increase sharply. Neither the DEA, not its minions can make people perceive Cannabis as “unsafe”, where is in reality it is quite safe, much safer than alcohol and other alternatives. With the rise of the use of alcohol/hard drugs, the amount of violence and mayhem in this society will also rise, something that every mother and wife should consider. In these hard economic times our so-called “representatives” do not even dare talking about cutting the bloated DEA budget, especially its so-called “marijuana” enforcement, while they are willing to discuss cutting everything else. This is because the DEA and its minions are very good with attaching labels, and no one wants to risk being “labeled” as “soft on drugs”! The employment drug tests have a potential of “screening out” “Picassos”, and Lady GaGa’s, and Willie Nelsons, but letting people like Charlie Sheen and Mel Gibson slip through (if the employers are “lucky”). And to say that Cannabis Plant does not have medicinal properties is simply delusional! Cannabis prohibition, as based on total scientific and philosophical “un-realities” can never succeed in the long run, it has a potential to do a great deal of damage to society, to exacerbate the Nation’s hard drug, alcohol and violence problems, and it should be abolished ASAP!
Most of us know the bennifits of cannabis, but to get people to listen we have to mention $$$$$. That is sad but it’s a start!