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Cannabis

In: Business and Management

Submitted By sandoval8869
Words 1565
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Economic Benefits of Cannabis Legalization * Excise Taxes $2.2 - $6.4 Billion * Sales Taxes $0.2 - $1.3 Billion * Enforcement Savings $6 - $9 Billion * Hemp Industry $6 - $10 Billion * Others: Spinoff industries, Reduced hard-drug and alcohol abuse untaxed free market
In an untaxed free market, cannabis ought to be as cheap as other leaf crops. Bulk marijuana might reasonably retail at the price of other medicinal leaf herbs, around $.75 -$1.50 an ounce. Premium grades might be compared to fine teas, which range up to $2 per ounce, or to pipe tobacco, which retails for $1.25-$2.00. High grade domestic sinsemilla might however cost somewhat more, due to the relatively lower yield of cannabis compared to tea and tobacco, and the high level of U.S. labor costs. Cultivation expert Ed Rosenthal estimates that domestic labor costs could be as high as $5 per ounce. Advertisements from medical catalogs indicate that cannabis cost about $2.50-$5 per pound in 1929-30. [01] Adjusting for inflation, this works out to $1.20-$2.40 per ounce, a breathtaking 100- to 300-fold reduction from today's illicit prices, which range from $100- $200 per ounce for low-grade Mexican to $400- $600 per ounce for high-grade sinsemilla.
Abstract:
Marijuana legalization offers an important advantage over decriminalization in that it allows for legal distribution and taxation of cannabis. In the absence of taxation, the free market price of legal marijuana would be extremely low, on the order of five to ten cents per joint. In terms of intoxicating potential, a joint is equivalent to at least $1 or $2 worth of alcohol, the price at which cannabis is currently sold in the Netherlands. The easiest way to hold the price at this level under legalization would be by an excise tax on commercial sales. An examination of the external costs imposed by cannabis users on the rest

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