Skip to main content

Drug Legalization Could Reduce Government Costs and Raise Tax Revenues

Submitted by dguard on
In a forthcoming study for the Cato Institute, Jeffrey A. Miron, senior lecturer on economics at Harvard University and a senior fellow at Cato, and Katherine Waldock, professor of economics at New York University, estimate that legalizing drugs would save the government approximately $41.3 billion annually on expenditures related to the enforcement of prohibition. Just as important, drug legalization would translate into higher tax revenues generated by the sale of these newly-legalized products in the open commercial marketplace. Drug legalization would yield tax revenues of $46.7 billion annually, assuming legal drugs were taxed at rates comparable to those on alcohol and tobacco, they said.

Add new comment

The content of this field is kept private and will not be shown publicly.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Permission to Reprint: This content is licensed under a modified Creative Commons Attribution license. Content of a purely educational nature in Drug War Chronicle appear courtesy of DRCNet Foundation, unless otherwise noted.