Should Governments Legalize and Tax Marijuana? The war on drugs is an expensive battle, as a great deal of resources go into catching those who buy or sell illegal drugs on the black market, prosecuting them in court, and housing them in jail. These costs seem particularly exorbitant when dealing with the drug marijuana, as it is widely used, and is likely no more harmful than currently legal drugs such as tobacco and alcohol. There's another cost to the war on drugs, however, which is the revenue lost by governments who cannot collect taxes on illegal drugs. Marijuana Legalization and the Revenue From Marijuana Sales The study estimates that the average price of 0.5 grams (a unit) of marijuana sold for $8.60 on the street, while its cost of production was only $1.70. Legalized Marijuana Profits to the Government Stephen T. Marijuana Supply and Demand One interesting thing to note from such a scheme is that the street price of marijuana stays exactly the same, so the quantity demanded should remain the same as the price is unchanged.
Waiting to Inhale (2005 Medical Marijuana May Become Decriminalized in 7 States Toking-up on medical marijuana may be legal in seven states after the November election. As of June 1, Ohio, Illinois, New York, Missouri, Pennsylvania, Massachusetts and New Hampshire included medical marijuana decriminalization amendments on the fall ballot or before the state assembly, according to the Pro-Con website. The regulated use of organic cannabis would allow patients the ability to opt for natural rather than synthetic medications created in a laboratory environment. A total of 16 states and the District of Columbia currently permit the regulated use of medical marijuana, the New York Times reports. Although state laws will permit varying levels of sanctioned organic cannabis usage if the proposed measures pass, federal laws still consider any ingestion or possession of marijuana a criminal act. Illinois – House Bill 0030 is a pilot program valid for only three years.