Connect with us


US: Congress estimates revenue of $13,7 billion if cannabis is federally decriminalized



Photo: DR | Doeren Mayhew

Um report published by the Congressional Budget Office (Congressional Budget Office) of the United States of America (USA) provides that the federal decriminalization of cannabis could generate around US$13,7 billion in net income over the next decade. On the other hand, nearly a billion dollars in federal prison costs can be saved if the MORE Act be approved by the Senate.

The US House of Representatives voted this month federally decriminalize cannabis by passing the MORE Act (Marijuana Opportunity Reinvestment and Expungement Act), a Reinvestment, Opportunities and Purge of Cannabis project, but the proposal will only go ahead if it passes the plenary vote of the Senate, which is expected to be something difficult.

However, the Congressional Budget Office (CBO) made an estimate of the possible gains that could come from the passage of HR 3884 (the MORE Act) and attests that federal decriminalization would increase US revenues by about 13,7 billion dollars, in the period from 2021 to 2030, in
business revenue creation, compliance and taxes. “These increases would be partially offset by allowing deductions for business expenses associated with trafficking in controlled substances,” it reads. in the document.

Release of prisoners and elimination of criminal records would save nearly a billion

Another important fact is that decriminalization would eliminate the records of people convicted of federal cannabis-related crimes and would require the release of thousands of inmates, reducing them by about 73 people a year, between current and future inmates. The CBO analysis considers that the law would reduce the Department of Prisons' costs of housing inmates by reducing the number of inmates in federal facilities, which could represent a billion-dollar savings over the period 2021-2030.

Richard DeLisi served 31 years in prison for a 90-year sentence for a non-violent cannabis-related crime. He was released from a Florida prison in 2020, aged 71.

Most of the new funds – around eight billion – would come from trade taxes on the legal cannabis industry, such as sales and consumption taxes. A separate excise tax, initially based on the price of cannabis products, is also estimated to generate another 5,7 billion.

The 5,7 billion in expected revenue from the cannabis excise tax would go to the so-called Opportunity Trust Fund. Of that amount, about $3 billion would be spent by the Department of Justice over a 10-year period to provide job training, legal assistance and other services to communities affected by the drug war. The remaining 2,7 billion would go to the Small Business Administration, to be used in state and local grants, for small cannabis-related businesses that help develop licensing rules.

Legalization would also bring additional costs to the government, the CBO report says, although all expenditures would be fully offset by new revenues. The expected reduction in the number of inmates at the federal level, for example, would lead to government spending of about $636 million on federal benefit programs such as Medicare and Medicaid.

“Federal prisoners are generally not entitled to these benefits,” the report says. "By reducing the prison population, the CBO estimates, HR 3884 would increase the number of federal beneficiaries, compared with current law, by increasing direct spending on federal benefit programs."

Under the proposal, the excise tax would initially start at 5% of the cost of a product, increase over time to 8%, and later change to a weight-based tax.

While the MORE Bill faces an uphill battle in the Senate — some see the issue as an impediment unless Democrats gain control of the house — legalization advocates applauded the bill's passage in the House of Representatives as a major milestone.

Click here to comment
Notify of
Inline feedback
View all comments

Watch the Documentary "Patients"

Documentary Patients Laura Ramos help us grow

Mais recentes

Events2 hours ago

Spannabis will once again host ICBC Barcelona from the 14th to the 17th of March

The International Cannabis Business Conference (ICBC) will open another edition of Spannabis, on March 14th, with the aim of...

Press Releases1 hours ago

Porto, Matosinhos, Valongo and Paredes – Eight arrested for drug trafficking and more than 8000 doses of drugs seized

The Porto Territorial Command, through the Criminal Investigation Center (NIC) of Santo Tirso, between the 20th and...

National3 days ago

Portugal: GNR seizes 3 tons of hashish in the Guadiana River

The Coastal and Border Control Unit (UCCF) of the National Republican Guard (GNR) seized last Friday, the 23rd...

Events3 days ago

Spannabis 2024: Barcelona hosts the 20th edition of the largest cannabis exhibition in the world, from March 15th to 17th

Barcelona is preparing to host the 20th edition of Spannabis, the largest cannabis fair in the world, on the 15th,...

International6 days ago

Germany: Bundestag voted today in favor of legalizing cannabis, but Federal Council approval is still needed

The Bundestag debated and voted this afternoon on the project to legalize the personal use of cannabis in the country, with 407...

International7 days ago

Germany: Legalization will be discussed this Friday, the 23rd

The German Bundestag will finally deliberate on the legalization of cannabis for personal consumption in the country. The debate, which has been...

Hemp1 weeks ago

Hemp cultivation in the Azores will have an information session on Terceira Island

The Confraria Internacional Cannabis Portugal and CannAzores join forces to promote an Information Session on the Cultivation of...

Health2 weeks ago

CBD and CBC show promising results in head and neck squamous cell carcinoma

A study published in the journal Cancers found that cannabis extracts rich in CBD (cannabidiol) can kill breast cancer cells...

International2 weeks ago

Ukraine: Zelensky signs bill to legalize medical cannabis

Ukrainian President Volodymyr Zelensky signed a bill legalizing medical cannabis in Ukraine, with the expectation that...

National3 weeks ago

Portugal: Associação Mães pela Canábis publishes e-book on medicinal cannabis

The Association of Mothers for Cannabis (AMC) announced the launch of an e-book entitled “Frontiers of Cannabis: SCIENCE, THERAPEUTICS &...