The United States spends more than $50 million per year locking up more than a million people for mere possession of marijuana. But Canada’s putting a $1 per gram excise tax on consumers. If the United States implemented a similar policy, we could cut the cost of imprisoning people for an insignificant offense and rake in millions per year in taxes.
“We don’t know the size of the marijuana market right now,” Carl Davis, senior analyst at the Institute on Taxation and Economic Policy told The Huffington Post. “But we do know that legalization would lead to a positive revenue impact on the income and sales tax side.”