Legalizing Pot Will Help The Economy

It took the state of California going broke and our nation sliding into a deep recession (depression?), but finally someone is talking some sense about our draconian drug laws -- especially those regarding marijuana. Finally someone is acknowledging that not only is marijuana less damaging than many legal drugs, but it has the potential to bring in enormous sums when taxed.

This is a time when nearly every state is having trouble balancing their budgets, especially the large states. California has just had to pass a mix of cuts and tax increases to cover a $42 billion budget deficit. Here in Texas, we're looking at a $2 billion budget shortfall spurring 10% budget cuts in all state agencies. A new taxable commodity would be beneficial to all states.

A San Francisco Assemblyman is introducing legislation in California that would legalize marijuana for those who are at least 21 years-old, and tax it just as alcohol is sold and taxed. The marijuana crop, even though illegal, is huge in California (and most other states). In California, it is a $14 billion industry. To show how big that is, the California vegetable industry is $5.7 billion and grapes are $2.6 billion.

The Assemblyman, Tom Ammiano, estimates that at least $1 billion could be raised in taxes on marijuana. Personally, I think that is a very low figure. I think that marijuana could be taxed at 50%-100% and it's users would willingly pay that to have it legal. States like Texas and California could probably raise $5-$10 billion in new taxes off of marijuana. Think of the budget problems that kind of money would solve.

Another benefit of the legalization and taxation of marijuana is that it would make it harder for teens to get the drug. As long as it is sold on the black market, it is just as easy for teens to buy it as anyone else. Once it is legalized under the same rules as alcohol, then the black market will dry up (just like it did when prohibition was repealed) and it will be harder for teens to buy it.

Frankly, the prohibition of marijuana has been a gigantic failure. Anyone who wants it gets it. The only thing it has accomplished is to create a lucrative (and tax-free) black market for criminals to engage in.

Let's put the criminals out of business, and fill our state and federal coffers with a lucrative new tax. It just makes sense in light of the failure of prohibition and our ailing economy.