Cannabis: Tax Bonanza Boosts Marijuana Legalization Efforts

Adult-use marijuana programs are generating billions of dollars in tax revenues for state governments each year – bolstering the economic and equity case for legalization in other markets across the country as well as at the federal level. The economic argument might particularly resonate among reluctant Republican lawmakers on Capitol Hill, experts say. States with legal adult-use marijuana markets in operation already have generated nearly $8 billion in tax revenue combined since 2014, including $2.7 billion in 2020, according to a new report by Washington DC-based Marijuana Policy Project (MPP). California leads the way, generating an estimated $1 billion in tax revenue in 2020 alone, while Washington state has produced the most since 2014 ($2.6 billion). “The tax revenue report is a great tool to have in the toolbox when talking to a legislator on either side of the aisle,” Jared Moffat, state campaigns manager at MPP, told MJBizDaily. “Republicans might think about new revenue as a way to cut taxes somewhere else, while Democrats see opportunities to invest in socially beneficial programs. “The report also shows that states’ revenue intake keeps going up year after year in legalization states, another strong piece of evidence that cannabis legalization is working quite well.” -Marijuana legalization efforts get boost from billions in MJ tax dollars