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Pro-Pot Ads Claim Legalization Will Save Cash-Strapped States

Friday, September 21st, 2012

brown envelope with moneyIn states that may legalize marijuana use, marijuana advocates are touting the argument that cash-strapped states will raise money by legalizing marijuana. Pro-legalization ads promise “Jobs for our people. Money for schools,” and proclaim, “Strict Regulation. Fund Education.” However, a story by the Associated Press finds that estimates of added income vary widely, and it is difficult to say how much money legalization would raise for the states. In Colorado, Washington and Oregon—the three states that have ballot initiatives to legalize the recreational use of marijuana—some analysts estimate that the added tax revenues will range from $5 million to nearly $2 billion. However, other experts note “the actual result is anyone’s guess.” It is difficult to reach an estimate since no one for sure knows how many people are buying marijuana illegally, how much demand would change if marijuana were legal, and how legalization would change the price of pot.

Source: The Associated Press Marijuana legalization could be tax windfall for cash-strapped states, but skeptics abound

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