The states are continuing to eye the marijuana industry (heroin second, crack third, cocaine fourth) as an additional source of new revenue. This, despite the fact that there are federal laws in place against marijuana possession.
In November, Colorado voters may decide whether to legalize the possession and sale of small quantities of cannabis. The state already collects $60 million a year in taxes on the production and sale of medical pot. (I still cannot believe that California didn’t already do this).
Medical marijuana contributes $100 million a year to state and local coffers in California. All told, currently sixteen states plus D.C. are already collecting taxes and fees on pot prescribed by physicians. It is estimated that full legalization could generate $15 billion to $25 billion a year for states. California alone estimates potential revenue from industry taxes and fees at $1 billion.
After Colorado, a number of the states are likely to head down the legalization path. The Midwest farmers may switch in the blink of an eye from soybeans, corn and wheat to drugs.
As budget woes persist, more states will find it tough to resist the temptation.
This would be a major blow the Mexican Cartels who are making the money now.
I expect prostitution and whore houses to be next on the approval list. Especially since the government has been in the gambling business for decades (lottery, horse racing, dog racing and casinos).