Analysts at Barclays suggest the U.S. cannabis market could be worth $28 billion if legalized today and $41 billion by 2028 “on a pre-tax basis,” according to a note to investors outlined by CNBC. If taxed at the same level as tobacco, a $41 billion cannabis market could be worth nearly $28 billion in tax revenues “across all levels of government.”
“While no bonds backed by cannabis tax revenues have been placed thus far, if federal approval is granted, the cannabis muni bond market will likely flourish, amounting to billions if not tens of billions of dollars, in our view.” – Barclays, via CNBC
The firm looked at the tax revenues in Colorado, Washington, and Nevada which were already exceeding alcohol tax revenues and, in Colorado, tobacco tax revenues. It incorporated data from the 2017 National Survey on Drug Use and Health which found about 10 percent of the total population – or 26 million Americans over age 12 – used cannabis.
In March, Democratic Sen. Corey Booker, who is running for president, reintroduced the Marijuana Justice Act which would legalize cannabis federally. Under the measure, cannabis-derived taxes would be used to fund social programs such as job training.
The measure was originally introduced in 2017 but received no floor hearing. It is currently in the Senate Judiciary Committee.