Jeffery Miron, Harvard Econ. Prof.;
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Originally Posted by Eshlemon
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In our
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, just released by the Cato Institute, we estimate the impact of legalization on federal, state, and local budgets. The report concludes that drug legalization would reduce government expenditure about $41.3 billion annually. Roughly $25.7 billion of this savings would accrue to state and local governments, and roughly $15.6 billion to the federal government. About $8.7 billion of the savings would result from legalization of marijuana, $20 billion from legalization of cocaine and heroin, and $12.6 billion from legalization of all other drugs.
Legalization would also generate tax revenue of roughly $46.7 billion annually if drugs were taxed at rates comparable to those on alcohol and tobacco. About $8.7 billion of this revenue would result from legalization of marijuana, $32.6 billion from legalization of cocaine and heroin, and $5.5 billion from legalization of all other drugs.
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