Should Governments Legalize and Tax Marijuana? · 2 January 07

Frasier Institute

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This article talks about a recent study done by the Frasier Institute, which discusses the pros and cons to legalizing marijuana. The study goes in depth regarding the positive aspects that this drug would have on our government, most notably our taxes. If Marijuana were legalized, the government would be able to tax this drug making a net profit of around $6.90, estimating a profit of 2 billion dollars a year.

Furthermore, the article discusses the cost of housing criminals that have been convicted for either buying or selling the drug. The government would save more money each year from the decline in inmates caused by the legalization. On the flip side, this article also talks about the health affects it would have on society, although they said marijuana is no more harmful than tobacco or alcohol. The study suggests that with legalization, the demand for the product would rise, since the risk is dramatically lowered.

Finally, the article states that governments that are scrambling to find new sources of revenue to pay for important social objectives such as health care and education, expect to see the idea raised in Parliament sooner rather than later. Before considering legalizing marijuana, there are many economic, health, and social issues that must be analyzed.