Save the Budget by Legalizing Marijuana

Do a google search and type in the following letters - legali.  I find this topic so fascinating.  Isn’t it interesting that this movement would gain strength during a time of massive government deficits?  The most likely time to get people to overlook their moral compass is when they are imprisoned by debt.  I also think this is a topic that can be looked at in many different ways such as the financial argument, social argument, political argument, medical argument, moral argument… 

In California due to the reported $26 billion dollar budget deficit, the move to legalize marijuana has been growing.  I’ve seen petitions outside Target trying to get a ballot initiative to legalize marijuana on the 2010 vote.  They use the argument of helping the state’s fiscal problems by legalizing and taxing marijuana use.  Reportedly, the state could generate up to $1.4 billion in tax revenue through legalization.  Obviously no small amount, but a drop in the bucket compared to the state’s continued budget problems.  I will try to attack this issue head on based on the argument they are using as the reason to legalize.  I believe you can make the argument from many different angles, but for this post, I’ll stick to the belief that legalizing marijuana will help the California state budget.

First of all, in order to arrive at a long-term solution to the budget, you need to have a long-term solution.  Arbitrary taxes on different things aren’t a long-term solution.  If they were, we would have no budget problems because we’ve already legalized and taxed Indian Casinos, state lotteries, etc.  Further, we have taxes on alcohol, tobacco, gasoline, and numerous other harmful substances.  Yet our budget problems remain.  The only way to fix the problem is to learn to live within our means. 

Secondly, the notion that we will save money by taxing marijuana is laughable in my opinion.  It’s especially ironic given that most of the budget problems and long-term deficits are related to healthcare.  At a time when liberals are trying to create nationwide healthcare, how does it make any sense to legalize harmful substances such as marijuana.  I found the following information on the Department of Justice’s DEA website.  Given the Obama administration’s stance on marijuana use, I bet this information won’t be available for too much longer. 

According to the DEA, smoking 5 joints a week is equivalently harmful as smoking a pack of cigarettes a day. 

In 1999, a record 250,000 Americans entered substance abuse treatment primarily for marijuana dependence, second only to heroin.  - Taxpayers pay for these programs

Smoking one marijuana cigarette deposits about four times more tar into the lungs than a filtered tobacco cigarette. 

The risk of a heart attack is five times higher than usual in the hour after smoking marijuana. 

In 2000, productivity losses due to drug abuse cost the economy $110 billion.

All these stats would invariably increase if use was legalized as more people would use and the costs would be higher.  In 2001, a survey on Drug abuse found that 15.9 million American use illegal drugs, 66 million use tobacco, and 109 million use alcohol.  Further, in countries like the Netherlands where drugs were legalized, the percentage of users increased almost two fold after legalization.

In my opinion based on research, not catchy commercials or salesmen, purely on a monetary standpoint, the costs far outweigh the benefits.  The argument that you can save the budget by taxing marijuana is tenuous and collapses under careful inspection of the facts.  I invite readers to educate themselves, families, and friends.  You can start by reading the DEA’s report. 

You can find the DEA’s report here.

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This entry was posted on Tuesday, July 28th, 2009 at 4:00 am and is filed under California's Troubles, Economics, Healthcare, Law enforcement, Obama, Taxes, budget. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

2 Responses to “Save the Budget by Legalizing Marijuana”

  1. Eric Says:

    I used to assume that people who want marijuana will find a way to get it, so use wouldn’t increase with legalization. But I think you’re right, use would definitely increase. There are many people who haven’t ever used it because they don’t know where to get it or it isn’t convenient. But if it was sold in 7-11s next to the cigarettes, it would be staring all of these people in the face as they bought their Slurpees. Suddenly it’s convenient and people will try it out of curiosity.

  2. Eric Says:

    I also saw a guy on the freeway this morning who had replaced his brake lights with cut-out L.A. Dodgers logo lights and had a big marijuana leaf sticker covering his entire back window. Why don’t the cops just pull dudes like that over and fine them when they inevitably find marijuana. Or why don’t we tax people who put stupid lights on their cars.

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