Every other November brings an air of political change, but this year might bring more than usual. On Nov. 2, California's ballot will include Referendum 09-0024, the infamous Marijuana Reform Law which would legalize marijuana in the state.
This would allow anyone in the state to purchase marijuana over the counter and carry up to one ounce. The regulation would be similar to alcohol and would include a 21-year-old age restriction, excise taxes, sales taxes and consequent enforcement of public sobriety and driving under the influence laws. Aside from the morality debate that seems to engulf marijuana discourse, there is a legitimate reason that might drive nonusers to vote for this initiative: money.
Historically speaking, marijuana prohibition has only been around since 1937, when the Marijuana Tax Act was passed by Congress, widely recognized as the start to marijuana prohibition. Before 1937, marijuana and hemp industries regulated farmers with legislation such as the 1619 Virginia House of Burgesses Act, which required farmers to grow Sativa and Indica strains. Until the 18th century, hemp could have been used to pay taxes in Kentucky, Virginia and other states with high cultivation rates. Since the marijuana prohibition, some states such as California have defied federal law and created exception statutes.
Although California's status allows for all sorts of murky interpretations about legal marijuana use and distribution, there are already outstanding illegal markets.Roughly $200 million in state costs come from arrest, prosecution and incarceration under current marijuana laws. The revenue generated from the illegal sale and use of marijuana in California totals $14 billion every year, according to the California Board of Equalization.
None of this money goes into the state's coffers. If this law passes, the state of California would also see an estimated $1.4 billion in excise and sales taxes alone. In addition to state sales and excise taxes, individual municipalities and city magistrates could levy other taxes, therefore increasing the benefit to both state and city government.
This industry would produce revenue on the consumer level as well as promote industrial development by providing Californians up 110,000 sustainable jobs, with those numbers based on the state's wine industry. California has the immediate potential for roughly $15 billion in new revenues.
But the cherry on the top of the sundae will be what is referred to as "spin off" industries. These are the coffeehouses, the head shops and resulting tourism that comes with a legalized marijuana industry. The potential revenue is something to the tune of $12 billion to $18 billion, according to a study performed by Dale Gieringer, who received a doctoral degree from Stanford in drug regulation.
This initiative could bring about between $14 billion on the low end of the spectrum and upward of $33 billion for California, a state plagued by roughly $20 billion in budget deficit. This money would not be a one time half-baked government bailout, but create long-term sustainable growth.
With this much potential revenue, it makes more sense that Californians are leaning toward this initiative. According to Allen St. Pierre, the executive director of the National Organization for Reform of Marijuana Laws, 56 percent of Californians said they will vote for this initiative, compared to the 44 percent of Americans that said they would vote in support of this issue.
"This issue is what my friends in England would call a 'wobbler,' where it will pass or fail by only a few percentage points," St. Pierre said.
In a few months, Californians have the potential to change the political landscape of America, but the result is by no means certain. With many economic advantages to legalization as an incentive, Nov. 2 could be the day California starts a domino effect which reverses 73 years of marijuana prohibition across America.
NewsHawk: Ganjarden: 420 MAGAZINE
Source: The Battalion Online
Author: Richard Creecy
Copyright: 2010 The Battalion Online
* Thanks to MedicalNeed for submitting this article
This would allow anyone in the state to purchase marijuana over the counter and carry up to one ounce. The regulation would be similar to alcohol and would include a 21-year-old age restriction, excise taxes, sales taxes and consequent enforcement of public sobriety and driving under the influence laws. Aside from the morality debate that seems to engulf marijuana discourse, there is a legitimate reason that might drive nonusers to vote for this initiative: money.
Historically speaking, marijuana prohibition has only been around since 1937, when the Marijuana Tax Act was passed by Congress, widely recognized as the start to marijuana prohibition. Before 1937, marijuana and hemp industries regulated farmers with legislation such as the 1619 Virginia House of Burgesses Act, which required farmers to grow Sativa and Indica strains. Until the 18th century, hemp could have been used to pay taxes in Kentucky, Virginia and other states with high cultivation rates. Since the marijuana prohibition, some states such as California have defied federal law and created exception statutes.
Although California's status allows for all sorts of murky interpretations about legal marijuana use and distribution, there are already outstanding illegal markets.Roughly $200 million in state costs come from arrest, prosecution and incarceration under current marijuana laws. The revenue generated from the illegal sale and use of marijuana in California totals $14 billion every year, according to the California Board of Equalization.
None of this money goes into the state's coffers. If this law passes, the state of California would also see an estimated $1.4 billion in excise and sales taxes alone. In addition to state sales and excise taxes, individual municipalities and city magistrates could levy other taxes, therefore increasing the benefit to both state and city government.
This industry would produce revenue on the consumer level as well as promote industrial development by providing Californians up 110,000 sustainable jobs, with those numbers based on the state's wine industry. California has the immediate potential for roughly $15 billion in new revenues.
But the cherry on the top of the sundae will be what is referred to as "spin off" industries. These are the coffeehouses, the head shops and resulting tourism that comes with a legalized marijuana industry. The potential revenue is something to the tune of $12 billion to $18 billion, according to a study performed by Dale Gieringer, who received a doctoral degree from Stanford in drug regulation.
This initiative could bring about between $14 billion on the low end of the spectrum and upward of $33 billion for California, a state plagued by roughly $20 billion in budget deficit. This money would not be a one time half-baked government bailout, but create long-term sustainable growth.
With this much potential revenue, it makes more sense that Californians are leaning toward this initiative. According to Allen St. Pierre, the executive director of the National Organization for Reform of Marijuana Laws, 56 percent of Californians said they will vote for this initiative, compared to the 44 percent of Americans that said they would vote in support of this issue.
"This issue is what my friends in England would call a 'wobbler,' where it will pass or fail by only a few percentage points," St. Pierre said.
In a few months, Californians have the potential to change the political landscape of America, but the result is by no means certain. With many economic advantages to legalization as an incentive, Nov. 2 could be the day California starts a domino effect which reverses 73 years of marijuana prohibition across America.
NewsHawk: Ganjarden: 420 MAGAZINE
Source: The Battalion Online
Author: Richard Creecy
Copyright: 2010 The Battalion Online
* Thanks to MedicalNeed for submitting this article
