Senseless optimism or a devious fraud, cash sparks the legalization debate!

Of all the sensible reasons Americans believe the federal government should legalize recreational marijuana – parity of substances, liberty, equality, and the plant’s yet undiscovered medicinal value – the least important yet most touted reason is financial gain. According to a new study published by the American Economic Association (AEA), the feds could harvest approximately $12 billion annually from legal marijuana.

Calling cannabis one of the most commonly used illicit drugs globally, Australian researchers have sought to quantify some of the hazier ramifications of legalizing weed in Australia with a study that drills down on the projected marijuana use rate and how much that use would raise in new taxes. Originally conceived for justifying Australia’s own legalization debate, the study’s projected new crop of marijuana-related taxes is certainly applicable to America’s current predicament:

“Among other things, legalization would increase access and remove the stigma of illegality. Our model disentangles the role of access from preferences and shows that selection into access is not random. We find that traditional demand estimates are biased resulting in incorrect policy conclusions. If marijuana were legalized, those under 30 would see modest increases in use of 28 percent, while on average use would increase by 48 percent (to 19.4 percent). Tax policies are effective at curbing use, where Australia could raise $1 billion and the United States $12 billion.”

By simply legalizing recreational marijuana in the U.S. and imposing a federal tax of 25 percent on all pot sold from California to New York, the AEA calculates the federal government could rake in approximately $12 billion a year in taxes. Citing Colorado as a prime example of fiscal responsibility, after legalizing recreational marijuana in 2012 the Centennial State was able to allocate over $35 million in marijuana revenue to Colorado’s Department of Education, Department Health Care, Department Law Enforcement, and the Department of Public Safety during fiscal 2014 – 2015.

As America’s national debt clock continues to spin out of control– $19 trillion in the hole and counting – we are left with an obvious choice. The trick is being able to tell the difference between lucid moments of inspiration (legalization) and tortured flashes of a dystopic reality (prohibition).