![]() The 39 states allowing both medical and recreational marijuana use, along with the 19 more, plus the District of Columbia, that allow medical use only, have already seen the tremendous tax windfall from cannabis sales. Andrew Long for MJ Biz Daily wrote that by using an economic multiplier formula, we can see that cannabis tax is just the tip of the iceberg in the economic impact that cannabis has. As Leafly reported in their 6th annual Jobs Report, the cannabis industry was responsible for over 428,00 jobs in legal states nationwide. Those employees spend their employment money on day-to-day needs such as housing, transportation, entertainment, food, and so much more. The cannabis companies themselves spend money on real estate, utilities, nutrients, equipment, technology, and so on. MJBizDaily used a standard multiplier of 3.5 for marijuana sales and projects that “for every $1 consumers and patients spend at retail locations, an additional $2.50 will be injected into the economy, much of it at the local level.” The state of California reported about 1.3 billion dollars in taxes they received for adult-use sales in 2021. This economic multiplier estimates California has benefited from cannabis to the tune of approximately $3.2 billion in 2021 alone. It’s noted each state will have varying levels of impact based on their type of markets and taxes. Long points out that using an economic multiplier isn’t an exact science, but it does give a good idea of how much broader of an impact cannabis has on our economy. Despite the guess factor in an economic multiplier, we can still get a far better idea of the actual impact the cannabis industry has on those states that legalize and how much even those not directly in the sector are benefitting from it. Catherine Cole / The M News Now Comments are closed.
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