As per latest Economic Analysis by experts, the results comprehend that legalization of Marijuana in Texas would Generate Billions in Tax Revenue. The analysis has speculated that if Marijuana becomes legalized in Texas, it stands a high probability to create tens of thousands of jobs in the economic sector and generate billions of dollars in the tax revenue.
But how much the legalization of marijuana will help and also how much of a positive impact it will have on the tax revenue generation in Texas is still an open discussion.
In this informative article, we will be analyzing this possibility to show if the economic analysis has any strong contention to uphold at all or not. So, without further ado, let’s dive into the main content.
Please keep reading to know Texas position on Legal Marijuana….
To have a fair understanding, it is important to primarily know the background scenario of Texas, its economic condition and basis of the report from Vicente Sederberg LLP, a national firm specializing in Cannabis law and policy.
The Texas legislature has been resistant to bring the policy change in the state for Marijuana legalization. However, the state is currently facing a large economic deficit brought on by the Coronavirus. Democratic Lawmakers and Marijuana legalization favoring advocates believe that this budget deficit is possible to restore by legalization of recreational Marijuana. The step could possibly generate 1 billion dollar revenue in a year.
Thereby, considering the economic perspective the report has filed a compelling case against Cannabis or cannabis related products i.e. Kushfly legalization and regulation of sales in the state. Kushfly delivers in California.
As per the report, the cannabis sale estimates to produce at least $2.7 billion annually in the adult-use marijuana market. And if Texas starts to follow Colorado’s marijuana tax model, it could bring significantly more than $1.1 billion dollars per biennium.
Additionally, in terms of creation of jobs through legal marijuana, the analysis projects that there would be direct creation of 20,000 to 40,000 jobs in the legal industry itself. Besides, job opportunities will also open for ancillary positions such as contractors and construction firms, HVAC manufacturers and installers, electrical and water service providers, processing equipment producers and retailers, and other professionals in the state.
The report further stated that, “We also expect it would bolster the hospitality industry, which would benefit communities that rely on tourism; especially those that have recently been severely impacted by the novel coronavirus, such as San Antonio, Houston, and Corpus Christi”. Additionally, the state would also realize significant criminal justice savings that is estimated around $311 million annually.
It is noteworthy that other states across the country are realizing the benefits of legislation and regulation of cannabis and that’s why the prohibition states also must reexamine the efficacy and costs of their current policies and take a closer look at the alternatives. A complete regulation on the cannabis market or industry would help the state in overcoming the losses that occurred from the Covid-19 pandemic. And keeping the consumption of recreational cannabis illegal is only preventing Texas from generating tax revenue and new jobs.
Further, it is to note that the state legalization over hemp, cannabis’s non-intoxicating cousin has led to some regulatory complications. Since both the plants are virtually indistinguishable, the police have failed to determine between the two in most cases, resultantly only few cannabis cases are filed. With hemp legalization, hundreds of low-level cannabis have been dismissed by prosecutors. The statistics of Texas shows that cannabis possession arrests fell almost 30% in Texas from 2018-19. The adult use of cannabis is quite evident in the country, be it convenient and efficient shopping sites for Marijuana Delivery in Los Angeles: Los Angeles Cookies delivery. But with cannabis being made legal, it would successfully end arrests and prosecutions for the low-level cannabis possession offences and save the state’s cost and expenditure.
All of these stemming losses due to illegal marijuana in Texas is no basis of making the economic condition of the country better in this pandemic. As Heather Fazio, the director of Texas for Responsible Marijuana Policy said, “Repealing marijuana prohibition and replacing it with a reasonable regulated market is a win-win for Texas” and “Even with modest taxation, legal cannabis for adult use would bring in much needed revenue and free up valuable public safety resources.”
Coming to our question, whether Legal Marijuana in Texas will create billions in Tax Revenue, the answer is yes it will. However, the final decision is yet to come as the lawmakers prepare for the 87th Legislature which is slated to start in January 2021. Surely there is high hope from lawmakers that sooner or later Texas would also join a growing number of states opting legalization of Marijuana, but the uncertainty still lies.
To that end, it is important for the Texas lawmakers to take note of the experience of the states already allowing legal sales and consumption, consider this reasonable argument on marijuana legalization and make it a suitable opportunity for being called a pro-business state before coming to a final conclusion.
This positive step from the state would only help in alleviating Texas economic losses incurred due to Covid-19 shutdown. Last but not least, it is to contend that if an alternative outlook is available and can save the state economic downturn then the legalization of Marijuana in these unprecedented times will be a great gift to its citizens (in terms of dire need for creation of new jobs) and for its economy (in terms of generation of more tax revenue).