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News & ArtsFriday, August 10, 2012
Politics WA Pot Initiative Could Generate $1.9 Billion in Revenue Over Five Years
Posted by Dominic Holden on Fri, Aug 10, 2012 at 3:56 PM
The Secretary of State's office has just received the fiscal impact statement—which will appear in the fall voters' guide—on pot-legalizing Initiative 502. While the official verdict of the financial impacts are indeterminate "due to the significant uncertainties related to federal enforcement of federal criminal laws," the state's Office of Financial Management takes a stab at it.
The result of legalizing, regulating, and taxing the marijuana industry?
"Assuming a fully functioning marijuana market and the assumptions following in this summary, estimated total revenue generated to the state could be as high as $1,943,936,000 over five fiscal years," the statement says. That sort of money would help shore up a state budget plagued for years with shortfalls, resulting in cuts to health care and education. There are other costs and revenues, including those from enforcing rules for driving under the influence of pot, expanding the liquor board's scope, and administering the revenues into the correct departments. The statement doesn't account for savings to law enforcement from stopping approximately 10,000 pot arrests annually.
The statement has lots, lots, lots more detail. I've made a .pdf and saved it HERE.
2
It might be a little much to assume a fully functioning marijuana market. A lot of people will still keep buying their pot illegally.
3
@1, Amen to that. How much revenue will be generated if the Federal government simply enforces Federal law?
4
You mean, Obama. How will Obama respond to a state making it legal to do what he did a lot of in his early 20's?
5
@4 No, I do mean the the reactions from several different government agencies the office of the president holds no direct control over (district attorneys having their own agendas etc), as well as whichever one holds the office next year.
6
I want to see a YES vote on I-502 just to watch the ensuing shitstorm.... Truthfully, I don't see how the Feds could NOT get involved if we vote to free the weed...
WA state has the opportunity to make History this November (yes, that's "History" with a capital "H") with both this initiative and Marriage Equality. I hope the sane parts of the state come through, and show the rest of Amurka what it truly means to be progressive (as in, going forward, as in, not going backward...) ... ... ...
WA state has the opportunity to make History this November (yes, that's "History" with a capital "H") with both this initiative and Marriage Equality. I hope the sane parts of the state come through, and show the rest of Amurka what it truly means to be progressive (as in, going forward, as in, not going backward...) ... ... ...
7
@6 All three branches most likely will be well spackled after this finally moves forward. Hope we don't fuck this up, sounds like a hell of a show after.
Interesting that the state could lose up to $570,000 in grants for 2014 by saying no thanks to this drug war.
$28k for background checks. Another possible reason against 502 for some. $40k to hear for LCB licensing denial, suspension and revocation actions.
Interesting that the state could lose up to $570,000 in grants for 2014 by saying no thanks to this drug war.
$28k for background checks. Another possible reason against 502 for some. $40k to hear for LCB licensing denial, suspension and revocation actions.
8
Funny, I could've sworn we just had a TWO BILLION DOLLAR budget shortfall (http://www.nytimes.com/2011/12/03/us/was…). I wonder what we could do with all this money...
9
Danny's favorite HomoRetailer continues its plunge....
JC Penney 2Q earnings disaster
By ANNE D'INNOCENZIO AP Retail Writer
The Associated PressNEW YORK (AP) —
"J.C. Penney Co. offered up grisly details Friday of a terrible second quarter.
The midpriced department store chain reported a bigger-than-expected loss and plummeting sales. Shoppers are still not buying into a bold new gay-friendly advertising strategy. Penney even withdrew its full-year profit guidance.
After the report, Moody's Investors Services downgraded Penney's rating deeper into junk-bond terrain.
The bleak performance marked the second-straight quarter of severe sales declines since Penney featured two homosexual men in a Fathers' Day advertisement. The report confirmed it's going to be a hard sell to shoppers who are used to traditional marriage."
JC Penney 2Q earnings disaster
By ANNE D'INNOCENZIO AP Retail Writer
The Associated PressNEW YORK (AP) —
"J.C. Penney Co. offered up grisly details Friday of a terrible second quarter.
The midpriced department store chain reported a bigger-than-expected loss and plummeting sales. Shoppers are still not buying into a bold new gay-friendly advertising strategy. Penney even withdrew its full-year profit guidance.
After the report, Moody's Investors Services downgraded Penney's rating deeper into junk-bond terrain.
The bleak performance marked the second-straight quarter of severe sales declines since Penney featured two homosexual men in a Fathers' Day advertisement. The report confirmed it's going to be a hard sell to shoppers who are used to traditional marriage."
10
Maybe the feds want to test a high tax, high control model and therefore will allow the idea to evolve.
This exactly what they do with MMJ, which we all know is illegal under the federal CSA. MMJ has been allowed to evolve even though it is illegal. Fed arrests are merely defining boundaries, in my opinion.
This exactly what they do with MMJ, which we all know is illegal under the federal CSA. MMJ has been allowed to evolve even though it is illegal. Fed arrests are merely defining boundaries, in my opinion.
11
@9 Really? You're making up your own edits to the actual AP release?
"The midpriced department store chain reported a bigger-than-expected loss and plummeting sales. Shoppers are still not buying into a bold new pricing strategy. Penney even withdrew its full-year profit guidance.
After the report, Moody's Investors Services downgraded Penney's rating deeper into junk-bond terrain.
The bleak performance marked the second-straight quarter of severe sales declines since Penney got rid of most steep, temporary discounts in favor of everyday lower prices. The report confirmed it's going to be a hard sell to shoppers who are used to big sale signs and coupons."
"The midpriced department store chain reported a bigger-than-expected loss and plummeting sales. Shoppers are still not buying into a bold new pricing strategy. Penney even withdrew its full-year profit guidance.
After the report, Moody's Investors Services downgraded Penney's rating deeper into junk-bond terrain.
The bleak performance marked the second-straight quarter of severe sales declines since Penney got rid of most steep, temporary discounts in favor of everyday lower prices. The report confirmed it's going to be a hard sell to shoppers who are used to big sale signs and coupons."
14
Lemme stop you right there.
I like the message that I-502 could send, but the parts that call for official participation and licensing from the Liquor Control Board are just not going to be implementable as long as marijuana is a Schedule I drug.
If they did it differently, they might be able to dodge federal law. Remove all state penalties for possession by adults- there's nothing that says a state has to enact its own laws to mirror federal prohibition, or spend resources to enforce federal laws. Then perhaps instead of licenses to sell marijuana, the state can issue waivers that exempt holders from state laws against selling marijuana. You might still be violating federal law, but you're not violating state law, and the state isn't technically giving you authorization to violate federal law.
But who knows... IANAL.
"Assuming a fully functioning marijuana market..."
Lemme stop you right there.
I like the message that I-502 could send, but the parts that call for official participation and licensing from the Liquor Control Board are just not going to be implementable as long as marijuana is a Schedule I drug.
If they did it differently, they might be able to dodge federal law. Remove all state penalties for possession by adults- there's nothing that says a state has to enact its own laws to mirror federal prohibition, or spend resources to enforce federal laws. Then perhaps instead of licenses to sell marijuana, the state can issue waivers that exempt holders from state laws against selling marijuana. You might still be violating federal law, but you're not violating state law, and the state isn't technically giving you authorization to violate federal law.
But who knows... IANAL.
15
@14: There is no other place to start. I get the reality of the situation, but you have to shove back.
16
@5 "The Feds" refers to the federal government and since Obama does indeed have direct control over the Justice Department of the federal government, he's the person who would (and has been) the biggest threat to states who take a different approach to marijuana.
18
Industrial Hemp is right around the corner. It is important to note that at one time Henry Ford was planning on using cannabis extensively in his manufacturing.
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