Apr 23, 2022
The Tax Foundation
A trend that's lighting up: Over 40 percent of the U.S. population lives in states where adult-use recreational marijuana can be legally accessed, and a large majority of voters support federal cannabis reform.
Growing marijuana sales and expanding popular support make it likely that more states, and maybe even the federal government, will consider allowing licensed sales of, and taxing, marijuana.
Less is MORE: Whether it's the MORE Act, Cannabis Administration and Opportunity Act, or another proposal, taxes will play an important role in the success or failure of federal cannabis reform.
Growing green: The legal marijuana market is projected to be worth up to $30 billion by 2023, two times that of firearms and ammunition and three times that of McDonald’s sales revenue in the United States.
A little late to the party: With some states already having relative success in marijuana legalization and taxation, the federal government should proceed with caution.
A profitable new industry to tax is understandably enticing to many lawmakers, but it's crucial to get the tax design correct. See more.