Marijuana sales to boost Colorado state tax revenue by a staggering $10 billion dollars by 2018
Filed Under: Local Government, News | Posted: 01/04/2014 at 12:08PM
Comments | Region: Colorado | United States
Incredibly long lines formed around Colorado marijuana shops everywhere. In some case people are waiting upwards to two hours to get in and causing problems in terms of parking and crowd control. You also have the problem of people coming in from surrounding state to take advantage of the new law.
According to reports the shops have grossed over a million dollars in the first few hours of opening their doors. In lines are young professionals including lawyers,doctors, accountants, college students, local celebrities, musicians, artists, mechanics, dry clear owners, security guards, maids, volunteer firefighters, bakery workers, writers, video-geographers, school teachers…and former military members suffering from post traumatic stress disorders (PTSD) and other illnesses – not the kinds of people you might expect.
Many of whom are dropping upwards to $300 per once for marijuana.
Investors are also being rewarded as the stock price of shares for cannabis-related companies have skyrocketing since the drug became legal throughout the state on January 1. 2014.
Source: Pot prices hits highs http://au.news.yahoo.com/thewest/business/world/a/20584460/pot-stocks-hit-highs-too-as-colorado-legalizes-marijuana/
See also interesting article about investing in marijuana forwarded to me by a friend Jake Cantrell: So I bought this penny stock – part 2 http://www.wallstreetoasis.com/blog/so-i-bought-this-penny-stock-part-2
A study cited by AFP estimated that the Colorado state government could reap an annual $10 billion by 2018 – a staggering amount! Researchers with ArcView Market, the same study cited by AFP, said they expect the national legal marijuana market to grow in size from $1.44 billion to $2.34 billion this year. That forecast will likely rise dramatically as Washington state is scheduled to legalize cannabis later this year.
This could translate in lower state deficits and more money for badly under-resourced social and educational programs.
In Colorado retail buyers are charged a staggering 10 percent tax for every sale (on every, eighth of an ounce quarter ounce and every ounce) and a 15 percent excise tax which varies based on the average market rate. The first $40 million in taxes are earmarked toward the school system whose budgets have been cut by lawmakers in that state with any tax dollars after that dedicated to regulations.
The only ones really pissed off are the cops – who vow to crackdown on anyone caught driving under the influence of marijuana – which will steal time and resources away from law enforcement who now have to deal with taking people in for expensive blood tests.
Such bravado is sure to get law enforcement in trouble as they lawyer up and clog the criminal justice system and contest convictions in court. Already commercials are appearing by lawyers who wish to represent people busted or harassed by the cops for DUI and other trumped up charges.
More importantly the legal pot sales are taking away revenue from street level drug pushers and dealers associated with Mexican organized crime – who are really taking a hit on the chin with this thing.
On the medical front marijuana is helping cancer patients by breaking down cancer cells in the brain, according to one study. Source: http://www.google.com/hostednews/afp/article/ALeqM5hI48Z7hVlUKCQa6mLariCgrgBnyg