House-Passed Marijuana Legalization Bill Would Add $13.7B To Federal Budget, Congressional Analysts Say

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The federal marijuana legalization bill passed in a historic vote last week by the U.S. House of Representatives would generate about $13.7 billion in net revenue for the U.S. treasury over the next decade, according to a new report by the Congressional Budget Office (CBO). It would also cut federal prison spending by nearly $1 billion. Most of the new funds—roughly $8 billion—would come from business taxes on the legal marijuana industry, such as income and payroll taxes. A separate excise tax, initially based on the price of cannabis products, is estimated to yield another $5.7 billion. “CBO and the staff of the Joint Committee on Taxation estimate that H.R. 3884 would increase revenues, on net, by about $13.7 billion over the 2021-2030 period,” says the nonpartisan report, published Friday. Known as the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act, the House-approved legislation would remove cannabis from the federal Controlled Substances Act, expunge past marijuana-related convictions and require certain criminal cases to be resentenced. Those changes “would reduce time served by 73,000 person-years” among current and future inmates, the report says. “CBO estimates that provision would result in net savings of about $1 billion over the 2021-2030 period.” Via CBO. Legalization would also bring additional government costs, the CBO report says, though all spending would be entirely offset by new revenue. The expected reduction in the federal prison population, for example, would lead to an estimated $636 million in new spending on federal benefits programs, such as Medicare and Medicaid. “Federal prisoners generally are not eligible for these benefits,” says the report. “By reducing the prison population, CBO estimates, H.R. 3884 would increase the number of federal beneficiaries, compared with current law, and thus increase direct spending for federal benefit programs.” The $5.7 billion in expected revenue from the marijuana…

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Source : House-Passed Marijuana Legalization Bill Would Add .7B To Federal Budget, Congressional Analysts Say

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