Pot Treats a Pandemic “Symptom”
Dear Tech Profits Daily Reader,
It looks like cannabis could help cure another major “symptom” of the COVID-19 pandemic…
One that’s almost certain to affect you.
Here at Tech Profits Daily we’ve talked about pot in the face of a pandemic.
And data have shown that more and more people are buying weed up in huge numbers — sending sales for dispensaries and stores higher and higher than before.
Because of this cannabis could cure an especially challenging COVID-19 “symptom” here in the U.S.
I’m talking about state revenue shortfalls…
With the economy on pause, state and municipal revenue sources are at a standstill. At the same time, states are shelling out substantial resources for everything from coronavirus testing to unemployment benefits. State budgets are experiencing unprecedented stress in many cases.
What does it all mean?
Suddenly, in states where cannabis legalization was the furthest thing from the legislative agenda, it’s beginning to look important.
Cannabis sales have actually been increasing amid the nationwide pseudo-lockdown.
That means in states where it’s legal, weed tax revenues are on the rise.
It’s not chump change, either.
In the first five years since legalization, Colorado made more than $1 billion in taxes, licenses and fees related to marijuana. California hit its first billion dollars in pot tax revenue in less than half that time.
That huge windfall, coupled with minimal negative community side effects, makes justifying cannabis prohibition a tougher pill to swallow for more states.
In large states like New York, analysts estimate that cannabis revenues would clock in at more than $1.3 billion a year — that number could fill as much as a quarter of the revenue gap New York’s state comptroller is projecting for COVID-19.
Beyond helping to fill states’ coffers, cannabis legalization also creates new jobs — an estimated 243,700 full-time equivalent jobs were supported by legal cannabis as of the start of this year.
That makes arguments against legalizing cannabis much riskier politically today than they were even a few months ago.
Cannabis provides one of the few levers that state governments can pull to open an instant flow of revenue and new jobs at a time when they’re needed most.
And it’s not just U.S. states that are exploring cannabis legalization as a stopgap to fill revenue holes left by COVID-19…
Members of the Mexican parliament are reportedly making cannabis a major piece of upcoming coronavirus recovery legislation.
A proposed bill would allow adult use, with a 12% tax on cannabis sales.
I hope that we’ll see some preliminary results soon on whether cannabis compounds help kill coronavirus in patients. But in the meantime, the data are already in on the impact of cannabis on tax revenues and job creation.
With the urgency created by COVID-19, that fact could push more states across the line in the months ahead.
To a bright future,