Taxes coming from marijuana businesses could generate $132 billion and create 1.1 million jobs by 2025 across the United States, a new study has revealed.
The study by New Frontier Data, a data analytics firm focused on the marijuana industry, examined the difference in terms of revenue by comparing a theoretical nationwide legalization to the current state-by-state legalization. It also made a prognosis over the anticipated impacts, which a full legalization would bring for the U.S. Treasury, the Globe Newswire reported.
The study found out that the difference between “the current structure and the theoretical model is a $76.8 billion increase in federal tax revenues.”
It also said that the full-fledged legalization would result “in $4 billion in payroll taxes.” It added: “By 2025, payroll deductions would increase to $5.9 billion.”
And if sales tax at the federal level was implemented at 15 percent: “The total tax revenues from 2017–2025 would theoretically be $51.7 billion.”
“This amount of revenue would be entirely new revenue to the U.S. Treasury, as there are currently no federal sales or excise taxes.”
Also combining the “business tax revenues, the payroll withholdings based on the theoretical employment required to support the industry, and the 15% retail sales tax,” the total federal tax revenue potential of legalization would be about $131.8 billion.
Three Common Business Taxes
The three most common business taxes that any standard U.S. business pays to the federal government are federal business taxes, payroll taxes, and sales taxes.
New Frontier Data CEO Giadha Aguirre De Carcer said:
“If cannabis businesses were legalized tomorrow and taxed as normal businesses with a standard 35% tax rate, cannabis businesses would infuse the U.S. economy with an additional $12.6 billion this year.”
Founded in 2014, New Frontier Data is headquartered in Washington and has additional offices in Denver, Colorado.
Finding After Sessions Anti-pot Move
There are nine U.S. states which have legalized marijuana with a dozen others permitting medical cannabis.
The report comes after U.S. Attorney General Jeff Sessions annulled an-Obama era policy which allowed states to operate their legal marijuana business without any federal intervention.
Federally, marijuana continues to be an illegal drug in the United States.