Marijuana Revenue Soars
It’s official: the first $1.0 billion has been made by a U.S. state via marijuana taxation, licenses, and fees. Colorado, the pioneer when it comes to marijuana legalization in the United States, has now reaped more than $1.0 billion in revenue since it legalized recreational pot in 2014.
The Colorado Department of Revenue announced that the combined marijuana tax, license and fee revenue reached $1.02 billion. Furthermore, marijuana sales alone have exceeded $6.5 billion. (Source: “Colorado has now made more than $1 billion from pot sales” CNN, June 14, 2019.)
“This industry is helping grow our economy by creating jobs and generating valuable revenue that is going towards preventing youth consumption, protecting public health and safety and investing in public school construction,” said Governor Jared Polis. (Source: “Colorado marijuana industry continues to grow, revenue surpasses $1 billion to date,” State of Colorado, June 12, 2019.)
You may be asking yourself: so what? What does this have to do with pot stocks?
The answer is pretty simple: a one followed by nine zeros is a big number by any measure. Then consider that the state in question, Colorado, isn’t particularly big and you have a pretty compelling argument for federal legalization of pot in the U.S.: big tax money.
The fact is that the U.S. government is forgoing tens of billions of dollars—and potentially hundreds of billions of tax revenue over the next decade—for every day that it delays what we already know to be certain: that recreational marijuana legalization is inevitable.
While we don’t know when cannabis will find itself on the right side of the law, we do know that the day is approaching—and fast. And when that day arrives, we’re going to see marijuana stocks soar.
Marijuana stocks in the U.S. have to gain from federal legalization. We’re talking another big-time green rush with many opportunities to profit for savvy investors.
The problem is, as I have mentioned before, getting past the sticklers in Congress who oppose marijuana legalization. Even President Donald Trump has been at best lukewarm on legalization, and at worst he’s hardly been a self-righteous anti-drug crusader.
But with the 2020 election quickly approaching, we may very well see a government that is fully controlled by the Democrats as they retake the presidency. Considering that most Democratic presidential candidates are pro-pot reform, that means marijuana could enjoy the fullest support yet from both the judicial and legislative branches.
Even with that control, marijuana legalization will take some wheeling and dealing. Being able to point to literally billions of dollars in tax revenue being left on the table, it will be hard for politicians to say no to that prospect.
Not to mention that it also fits in well with a number of other Democratic Party positions (incarceration reduction, equality, social justice, etc.).
Marijuana revenue continues to grow across the U.S., and with it, a new windfall for governments from which to draw revenue.
We’re talking money for everything from roads and schools to policing and welfare. Marijuana isn’t going to solve every problem, but it can help provide the funds to tackle a multitude of issues.
At the end of the day, milestones like the one achieved in Colorado continue to make the obvious case that federal marijuana legalization in the U.S. needs to happen, and the sooner the better.