{"id":11470,"date":"2024-07-03T20:53:00","date_gmt":"2024-07-03T20:53:00","guid":{"rendered":"https:\/\/wifamily.news\/?p=11470"},"modified":"2024-07-03T20:58:44","modified_gmt":"2024-07-03T20:58:44","slug":"policy-brief-tax-rates-state-revenue-and-markets-for-marijuana","status":"publish","type":"post","link":"https:\/\/wifamily.news\/?p=11470","title":{"rendered":"Policy Brief: Tax rates, state revenue and markets for marijuana"},"content":{"rendered":"

This post originally appeared at https:\/\/www.badgerinstitute.org\/policy-brief-tax-rates-state-revenue-and-markets-for-marijuana\/<\/a><\/p>\n

How much tax revenue can states raise on legal cannabis before driving users into the illegal market?<\/em><\/strong><\/h4>\n

Editor\u2019s note:<\/em><\/p>\n

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The experience of other states, researchers have found, is that legalizing adult recreational use of marijuana, or cannabis, whatever its other effects, may improve the employment outlook. But what of another often-touted economic benefit, tax revenue?\u00a0<\/p>\n

In this sixth installment in our \u201creal facts\u201d series, Jeremiah Mosteller looks at the available research. Some conclusions:\u00a0\u00a0<\/p>\n

States that legalized cannabis now collect billions of dollars in taxes, but the higher the tax rates, the greater a share of marijuana sales remain in the legacy illegal market.\u00a0\u00a0<\/p>\n

This means that two separate goals for taxing a legalized market \u2014 to raise revenue and to shrink the illegal drug trade \u2014 are in conflict with each other.<\/p>\n<\/div>\n

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Read the policy brief<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n

Tobacco and alcohol taxes, meanwhile, remain much larger revenue sources for states.\u00a0<\/p>\n

This part of our series follows previous installments:<\/p>\n