Lost Taxes and Other Costs of Marijuana Laws
Jon Gettman, "Lost Taxes and Other Costs of Marijuana Laws," The Bulletin of Cannabis Reform (September 5, 2007).
With the estimated retail value of the U.S. marijuana market at $113 billion, the local, state, and federal governments are forgoing $31.1 billion in potential sales tax each year. At the same time, marijuana arrests cost taxpayers $10.7 billion annually. Despite all the effort to eradicate marijuana in the U.S., use among youth has remained steady. A cost-benefit analysis of the situation indicates that the country could save roughly $42 billion a year by legally regulating and taxing the marijuana industry. This report details this evidence in support of marijuana policy reform, pointing out the similarities to how the tobacco regulations protect youth and places societal costs in the form of extra taxes on the smokers themselves.
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