Canada’s cannabis estimatesAnalysts are expecting legal cannabis to give a boost to Canada’s economy once its new drug policy enters into force this October. Some of the more conservative estimates expect Canada’s legal cannabis market to reach a value of $4 billion in the first year and continue to grow to over $7 billion in the next few years.This might seem a minuscule sum considering the estimated size of the global (illegal) cannabis market, estimated to be as big as $140 billion (or maybe even bigger) a year. But this is all money that will be coming from a legal, regulated, and taxed market, and fund necessary expenditure instead of organized crime.But the tax is just a fraction of the revenue Canada can expect its legal cannabis market to generate. On one hand, the government will see its costs reduced by the much smaller number of arrests and convictions related to cannabis use. Besides, companies will emerge to produce and sell cannabis, paying property taxes, business taxes, profit taxes, and such, boosting the tax revenues of the country by even more.With Canada collecting about 32% of its GDP in taxes of all kinds, even the most conservative estimates translate into $1.2 to $2 billion, or more, collected by the Canadian government each year.
Tax revenues from the US’s legal cannabis marketThe legal marijuana market in the US varies from one state to another. Cannabis sales are the smallest in Alaska, one of the states with the smallest population, barely reaching $39 million, and by far the highest in California, the most densely populated US state, where they exceed $2.75 billion a year. Legal cannabis has created more than 100,000 jobs in the US in 2017 alone and will continue to grow in the years to come, along with the market itself.
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