Legalizing cannabis and taxing it at half the current market price – let’s say, a nickle a milligram of THC – would produce $5-10b per year in net revenue, depending on the amount of tax evasion and the increase in quantity. Not a huge number, and it’s not a policy I especially like; I’d rather legalize cannabis on a non-commercial basis. But it’s one more illustration of what wasn’t even on the table as the Pain Commissioners did their work.
Why didn’t Simpson and Bowles propose legalizing and taxing cannabis? That’s $5-$10 billion a year.