The Economic Impact of Marijuana Legalization: Tax Revenue, Jobs, and Financial Growth in 2025

Writer: Joeziel Vazquez,

CEO & Board Certified Credit Consultant (BCCC, CCSC, CCRS)

Experience: 17 Years in Credit Repair Industry

Published: Apr 18, 2024 | Last Updated: Dec 7th 2025

When Colorado opened its first recreational marijuana dispensaries in January 2014, few could have predicted the profound economic transformation that would follow. More than a decade later, the numbers tell a compelling story about how cannabis legalization has reshaped state economies across America. States that have legalized adult-use cannabis have collectively generated over $24.7 billion in tax revenue since 2014, with 2024 alone bringing in a record $4.4 billion. Beyond the raw tax figures, the industry now supports over 440,000 full-time jobs and contributes billions to local economies through real estate development, business creation, and reduced law enforcement costs.

The question is no longer whether marijuana legalization impacts the economy, but rather how significantly it drives economic growth and what lessons the data provides for states still considering reform. Understanding these economic dynamics has become increasingly important as more jurisdictions weigh the financial benefits against regulatory challenges.

Understanding the Current Marijuana Legalization Landscape

As of late 2025, 24 states and the District of Columbia have legalized cannabis possession for adults 21 and older. The landscape has evolved dramatically since Washington and Colorado became the first movers in 2012. Currently, 22 states have fully operational adult-use markets generating tax revenue, while Delaware and Minnesota have legalized but not yet commenced retail sales. The federal government, meanwhile, continues to classify marijuana as a Schedule I controlled substance, creating a complex regulatory environment where state-legal businesses operate in technical violation of federal law.

This patchwork system has created what researchers call a natural experiment in economic policy. States that legalized early, particularly Colorado and Washington, have accumulated over a decade of data showing sustained economic benefits. More recent adopters like New York, New Jersey, and Connecticut are now entering markets that have matured considerably since the early days, with established supply chains, consumer bases, and regulatory frameworks informing their approaches.

The diversity of state approaches provides valuable insights. Some states, like California, have struggled with high tax rates that inadvertently sustained illicit markets. Others, like Illinois and Michigan, have found a balance that generates substantial revenue while successfully transitioning consumers from illegal to legal channels. Research from the Federal Reserve Bank of Kansas City indicates that early-adopting states experienced first-mover advantages in terms of economic benefits, while later adopters face different dynamics shaped by market saturation and established competition.

Tax Revenue Generation and Allocation

The fiscal impact of marijuana legalization extends far beyond simple sales tax collection. According to the Marijuana Policy Project, states collected over $4.4 billion in cannabis tax revenue during 2024, representing the highest single-year total on record. California led all states with over $1 billion in annual cannabis tax revenue, followed by Illinois at $578 million, Michigan at $524 million, and Washington at $516 million. These figures represent only adult-use cannabis taxation and do not include medical marijuana revenue or the broader economic multiplier effects.

The tax structures vary considerably across states, reflecting different policy priorities and market conditions. Colorado employs a combination of a 15% retail sales tax and a 15% excise tax on wholesale transfers, plus standard state and local sales taxes. Illinois uses a tiered system where cannabis flower is taxed at 10%, products with THC concentration below 35% at 20%, and concentrates above 35% at 25%, plus a 7% gross receipts tax. Michigan applies a 10% excise tax on top of the standard 6% sales tax. New Mexico recently increased its excise tax from 12% to 13% in July 2025, with scheduled annual increases reaching 18% by 2030.

How states allocate this revenue demonstrates varied priorities shaped by local needs and political considerations. In Colorado, marijuana tax revenue funds school construction, behavioral health programs, and law enforcement training. A significant portion goes to the state's Building Excellent Schools Today (BEST) program, which has received hundreds of millions for capital construction projects. Illinois directs 25% of cannabis tax revenue to the Restore, Reinvest, and Renew Program, which supports communities disproportionately impacted by the war on drugs. Another 20% funds mental health services and substance abuse programs, while 10% supports unpaid bills in the state's General Fund.

The allocation strategies reflect a broader trend toward using cannabis revenue for social equity and public health initiatives. According to research from the Center for American Progress, these reinvestment programs address historical injustices from marijuana prohibition, which disproportionately criminalized African American and Latinx communities. Understanding your consumer rights under the Fair Credit Billing Act becomes particularly relevant when considering how economic opportunities created by legalization can improve financial stability for communities previously excluded from economic participation.

Employment Growth and Job Creation

The cannabis industry has emerged as one of the fastest-growing employment sectors in the United States. The 2024 Vangst Jobs Report indicates the legal cannabis industry supports 440,445 full-time equivalent jobs, representing a 5.4% year-over-year increase with 22,952 new positions created in the past year. This growth occurred despite market consolidation and price compression affecting some mature markets.

California employs the largest cannabis workforce with over 74,000 full-time workers, followed by Michigan with 45,000, Florida with 31,000, Massachusetts with 27,000, and Pennsylvania with 25,000. The employment diversity within the industry extends far beyond cultivation and retail. Jobs span cultivation technicians, extraction specialists, laboratory testing professionals, compliance officers, marketing professionals, accountants specializing in cannabis taxation, security personnel, real estate developers, and software developers creating seed-to-sale tracking systems.

The Federal Reserve Bank of Kansas City research notes that states legalizing recreational marijuana experienced statistically significant increases in employment growth. Colorado, as an early adopter, issued approximately 38,000 occupational licenses in the first four years following legalization from 2014 to 2017. This job creation proved particularly valuable during economic downturns, as the cannabis industry demonstrated resilience during the 2020 pandemic when many sectors contracted.

Wage data reveals competitive compensation across the industry. According to cannabis industry statistics, the average annual salary for a cannabis industry worker reaches $125,894, though this varies significantly by role and region. Marijuana budtenders earn an average of $16.97 per hour, while brand ambassadors can make up to $25.00 per hour. Management positions, compliance roles, and specialized technical positions command higher salaries, often exceeding national averages for comparable work in other industries.

The employment growth patterns show regional variations influenced by market maturity and regulatory approaches. Midwestern markets, particularly Michigan, Missouri, and Illinois, have driven recent growth through rapid expansion in young markets. East Coast states like New York, New Jersey, and Connecticut are experiencing moderate but steady growth as they build out retail infrastructure. Mature Western markets like California and Colorado show slower but sustained growth as markets stabilize.

Whitney Economics projects the cannabis industry will see extreme sales growth over the next few years, with 2025 estimated at $35.2 billion in sales, representing a 12.1% increase from 2024. This projected growth suggests continued employment expansion, particularly as markets in high-population states reach their full potential. California, for instance, has only reached approximately 83,000 cannabis jobs out of an estimated potential of 133,000, indicating substantial room for continued employment growth.

Economic Activity Beyond Direct Sales

The economic impact of cannabis legalization extends considerably beyond direct sales and tax revenue. Research from Ohio State University examining recreational marijuana legalization found that states experienced statistically significant increases in housing costs, which researchers interpret through spatial equilibrium theory as residents valuing legalization as an amenity they willingly pay for through higher housing prices. This suggests the policy change increased overall regional desirability.

Real estate markets in legalized states have experienced notable changes. The Federal Reserve Bank of Kansas City research indicates that marijuana legalization increased commercial real estate demand, particularly for warehouse and retail space. The cash-intensive nature of the industry, resulting from federal banking restrictions, has led to increased real estate investment through all-cash purchases, potentially placing additional upward pressure on property prices in areas with tight housing supply.

The productivity effects appear modest but positive. Research suggests legalization shifts economic rents from illegal cannabis sales to state and local taxes, providing government revenue that can support productivity-enhancing services like education. The formalization of previously underground economic activity brings participants into the regulated economy, generating business taxes, wage income taxes, and payroll taxes that were previously uncollected.

Ancillary businesses have flourished alongside the direct cannabis industry. Legal services specializing in cannabis law, insurance products tailored to industry needs, specialized accounting and financial services, packaging and labeling companies, security firms, testing laboratories, and technology platforms for compliance and point-of-sale systems have all experienced growth. These supporting industries create additional employment and economic activity not captured in direct cannabis industry statistics.

The banking sector faces unique challenges and opportunities. Federal prohibition prevents most banks from serving cannabis businesses due to money laundering concerns, creating a predominantly cash-based industry. This has spurred innovation in payment processing and financial technology, with some state-chartered banks and credit unions developing specialized cannabis banking programs. The potential reclassification of marijuana from Schedule I to Schedule III, currently under consideration by the Justice Department, could dramatically alter the banking landscape and unlock additional economic activity.

Tourism represents another indirect economic benefit. Colorado tourism increased following legalization, with some visitors specifically attracted by legal cannabis access. Denver's tourism industry has incorporated cannabis into broader recreational offerings, contributing to hotel occupancy, restaurant revenue, and related economic activity. Similar patterns have emerged in other early-adopting states.

Law Enforcement Cost Savings and Criminal Justice Reform

Beyond revenue generation, marijuana legalization produces significant cost savings in law enforcement and criminal justice systems. The American Civil Liberties Union estimates approximately $7.7 billion is spent annually enforcing the war on drugs, with marijuana arrests comprising a substantial portion. States that have legalized have dramatically reduced these expenditures, freeing resources for other law enforcement priorities.

FBI data indicates over 200,000 cannabis-related arrests occurred in 2024 despite widespread legalization, highlighting that prohibition enforcement continues in states that have not reformed their laws. In legalized states, law enforcement resources previously dedicated to marijuana enforcement have been redirected to violent crime, property crime, and other public safety priorities. Research examining crime rates in legalized states generally finds either no change or modest decreases in crime, suggesting legalization does not compromise public safety while freeing substantial law enforcement resources.

The criminal justice cost savings extend beyond policing to prosecution, court systems, and incarceration. Each marijuana arrest generates costs for booking, prosecution, court time, and potentially incarceration or probation supervision. Eliminating these costs for simple possession and reducing them for cultivation and distribution offenses produces substantial savings. Understanding credit repair laws and consumer protections under the Credit Repair Organizations Act becomes particularly relevant for individuals whose employment and financial opportunities were limited by marijuana-related criminal records, which legalization and expungement efforts can help address.

Many states have incorporated expungement provisions into their legalization laws, allowing individuals with prior marijuana convictions to clear their records. This produces long-term economic benefits as previously convicted individuals gain access to employment, housing, education, and credit that criminal records had denied them. The economic impact of removing these barriers extends across generations, as families benefit from increased earning potential and reduced financial strain.

Challenges and Considerations for Economic Success

Despite impressive economic benefits, marijuana legalization faces significant challenges that affect its ultimate economic impact. Federal prohibition remains the most substantial obstacle, preventing banking access, creating tax disadvantages through Internal Revenue Code Section 280E (which prohibits business deductions for trafficking in controlled substances), and limiting interstate commerce. Cannabis businesses operating legally under state law face effective tax rates exceeding 70% due to their inability to deduct normal business expenses like payroll, rent, and marketing costs.

The potential reclassification of marijuana to Schedule III, which President Trump's administration has indicated interest in, could fundamentally change the economic landscape. Reclassification would eliminate 280E tax penalties, allowing normal business deductions and dramatically improving profitability. This could accelerate industry growth, increase employment, and enhance state tax revenue as businesses expand with improved economics.

Market saturation and price compression present challenges in mature markets. According to BDSA Retail Sales Tracking, equivalent average retail prices dropped 32% from their peak in Q3 2021 to Q2 2023, squeezing profit margins for cultivators and retailers. This compression results from increased competition, improved cultivation efficiency, and market maturation. While lower prices benefit consumers, they challenge businesses and can reduce tax revenue in states with percentage-based tax structures.

The persistence of illicit markets undermines potential economic benefits. California's experience demonstrates how high tax rates can sustain illegal markets by creating price differentials that incentivize continued black market participation. Research suggests successful legalization requires tax structures that compete with illicit prices while generating revenue. Finding this balance proves challenging, particularly as illicit markets adapt to legal competition.

Regulatory complexity and compliance costs affect economic outcomes. The seed-to-sale tracking requirements, laboratory testing mandates, packaging and labeling specifications, security requirements, and licensing processes create substantial overhead costs. While these regulations serve important public health and safety purposes, they particularly burden small businesses and can create barriers to entry that favor large, well-capitalized operators.

Banking restrictions create operational inefficiencies and safety concerns. Cash-based operations face increased theft risk, higher insurance costs, difficulty managing payroll and taxes, limited access to traditional business financing, and inability to use standard credit card processing. Operating in compliance with the Telemarketing Sales Rule demonstrates how regulatory compliance, while sometimes burdensome, protects consumers and builds industry legitimacy, similar to how cannabis regulation aims to create safe, accountable markets.

Public health considerations require ongoing attention and resources. Concerns about youth access, impaired driving, heavy use patterns, mental health impacts, and workplace safety require dedicated funding and program development. Responsible legalization allocates tax revenue to address these concerns through education programs, treatment services, and research initiatives. The long-term economic success of legalization depends partly on successfully managing these public health dimensions.

Comparing Economic Outcomes Across States

State-by-state comparison reveals important lessons about policy design and economic outcomes. Colorado's decade-plus experience shows sustained economic benefits with over $2 billion in cumulative cannabis tax revenue. The state's balanced approach, combining reasonable tax rates with robust regulation, has successfully transitioned most consumers from illicit to legal markets while generating substantial revenue. Employment in Colorado's cannabis industry represents approximately 1.35% of total state employment, demonstrating significant but not overwhelming economic presence.

Illinois represents a more recent success story, generating $578 million in 2024 despite only launching adult-use sales in January 2020. The state's tiered tax structure generates higher rates than some states but has proven economically viable. Illinois's emphasis on social equity, dedicating 25% of revenue to communities harmed by prohibition, addresses historical injustices while building political support for the program.

California's experience offers cautionary lessons. Despite having the largest market by total sales, the state has struggled with high tax rates that sustained a large illicit market. Recent tax reductions aim to improve competitiveness with illegal suppliers, but the state lost potential revenue during years when excessive taxation drove consumers to unlicensed sources. California's challenge demonstrates that maximizing nominal tax rates may not maximize actual revenue if it perpetuates illegal competition.

Michigan has emerged as an economic success story, balancing accessibility, regulation, and taxation effectively. The state's $524 million in 2024 tax revenue, combined with 45,000 industry jobs, demonstrates strong market performance. Michigan's willingness to issue licenses relatively freely, compared to states with strict caps, has fostered competition that benefits consumers while still generating substantial tax revenue.

Washington state's approach provides another model, using a simpler single-rate excise tax of 37% while prohibiting home cultivation. This generates substantial revenue ($516 million in 2024) but has faced criticism for high prices that may sustain some illicit activity. The state's decision to allocate significant revenue to substance abuse prevention and treatment demonstrates a health-oriented approach to revenue allocation.

New York represents the newest major market, having only commenced retail sales in December 2022. The state faces challenges in licensing and market development but possesses enormous economic potential given its population and existing cannabis consumption. Early indicators suggest the market will ultimately rival California and Illinois in economic impact, though achieving this potential requires continued regulatory refinement.

The Economic Case for Federal Legalization

The cumulative state experience builds a compelling economic case for federal marijuana legalization. New Frontier Data projects that full federal legalization could generate $105.6 billion in federal tax revenue and create 1 million jobs by 2025. The Washington Post reported estimates suggesting federal legalization could amass $131.8 billion in federal tax revenue between 2017 and 2025, money that could support infrastructure, education, healthcare, and other national priorities.

Federal legalization would eliminate the current state-federal conflict, allowing normal banking services, standard tax treatment, interstate commerce, and consistent federal regulation. This would reduce compliance costs, improve business efficiency, increase competition, and ultimately benefit consumers while enhancing tax revenue. The economic efficiency gains from ending the current fragmented approach could be substantial.

Managing personal finances and understanding budgeting fundamentals becomes increasingly important in a legalized cannabis economy, as new employment opportunities and business ventures require sound financial planning. The industry's growth creates economic opportunities that individuals can leverage through informed financial decision-making.

The elimination of 280E tax treatment would dramatically improve cannabis business economics. Currently, businesses cannot deduct ordinary expenses like rent, salaries, and advertising. Removing this restriction would increase profitability, allow for business expansion, create additional employment, and generate more tax revenue through growth rather than punitive taxation. This change alone could transform the industry's financial landscape.

Federal legalization could also address social equity more comprehensively. While some states have implemented equity programs, federal action could create nationwide expungement of marijuana convictions, preferential licensing for communities harmed by prohibition, business development support for minority-owned cannabis companies, and reinvestment in affected communities. The economic benefits of removing criminal records from millions of Americans would cascade through generations.

Economic Impact on Communities and Social Equity

The economic benefits of marijuana legalization should directly address the communities most harmed by prohibition. The war on drugs disproportionately targeted African American and Latinx individuals despite similar usage rates across racial groups. Criminal records from marijuana arrests created lifelong barriers to employment, housing, education, and economic opportunity, systematically excluding communities of color from economic participation.

Responsible marijuana policy uses tax revenue to create specific opportunities for affected communities. The Center for American Progress highlights several approaches states have implemented or proposed. Massachusetts created the Social Equity Program to support individuals from communities with disproportionate marijuana arrests in entering the industry. Oakland, California, implemented a Cannabis Equity Program offering business licensing support, business development assistance, and priority processing for equity applicants.

Economic justice requires more than just expungement; it demands affirmative creation of opportunities. Using marijuana tax revenue to fund job creation in historically affected communities, small business grants for minority-owned cannabis companies, educational programs and workforce training, community reinvestment in infrastructure and services, and wraparound support services helps correct historical injustices while building economic opportunity.

The economic multiplier effect in communities receiving reinvestment can be substantial. Jobs created in cannabis and related industries provide income that circulates through local economies, supporting other businesses, increasing property values, improving public services through increased tax revenue, and creating generational wealth accumulation opportunities. This comprehensive approach to marijuana legalization treats it not merely as a revenue opportunity but as economic justice.

How Credlocity Supports Financial Empowerment

The cannabis industry's economic growth creates opportunities, but individuals still face financial challenges that can limit their participation in the expanding economy. Many people seeking employment or entrepreneurship in the legal cannabis sector carry financial burdens from the past, including credit damage from previous economic hardships. Successfully navigating the modern economy requires good credit standing, whether applying for business financing, securing housing, or accessing employment opportunities that conduct credit checks.

Credlocity has served over 79,000 clients since 2008, helping individuals improve their financial standing and access economic opportunities. Our approach combines aggressive credit repair strategies with financial literacy education, recognizing that lasting financial health requires both removing past obstacles and building future capabilities. We operate with complete transparency under both the Credit Repair Organizations Act and the Telemarketing Sales Rule, ensuring consumer protection at every step.

Our services include monthly one-on-one consultations with certified credit professionals, monthly budgeting assistance included in all plans, real-time app access to track progress, and a 30-day free trial with a 180-day money-back guarantee. As a Hispanic-owned business operating from Philadelphia since 2008, we understand the economic challenges facing diverse communities and work to ensure everyone can access the economic opportunities that policy changes like marijuana legalization create.

We never enroll clients over the phone in compliance with TSR requirements, which mandate a six-month waiting period before credit repair companies can charge for services sold telephonically. This consumer protection exists because telephone sales pressure has historically led to fraud. We conduct all enrollments online, ensuring full transparency and compliance. Understanding comprehensive credit repair laws helps consumers identify legitimate services and avoid predatory companies that violate federal regulations.

Economic opportunities mean little if credit barriers prevent participation. Whether someone seeks employment in the growing cannabis industry, wants to start a business in any sector, or simply aims to improve their financial foundation, addressing credit challenges creates possibilities. Our educational approach ensures clients understand not just what we do for them, but how credit systems work and how to maintain healthy credit independently going forward. Learn more about our services and mission to understand how we differ from typical credit repair companies.

Looking Forward: Economic Projections and Future Growth

The economic trajectory of the legal cannabis industry points strongly upward. Statista projects total U.S. cannabis revenue will reach $45.3 billion in 2025, growing to over $49.56 billion by 2028. Whitney Economics predicts cannabis sales will hit $35.2 billion in 2025, representing 12.1% growth from 2024. These projections suggest sustained economic expansion despite market maturation in early-adopting states.

Employment projections indicate the industry will support over 500,000 jobs by 2025, representing continued growth even as some mature markets stabilize. New markets in high-population states like New York, New Jersey, Pennsylvania, and potentially Florida (if legalization advances) will drive much of this growth. The industry's economic contribution will increasingly shift from spectacular growth in pioneer states to steady expansion across more jurisdictions.

Federal policy changes could dramatically accelerate growth. Schedule III reclassification would improve business economics through normal tax treatment, potentially increasing employment, sales, and tax revenue. Full federal legalization would unlock interstate commerce, potentially consolidating production in states with optimal growing conditions while expanding retail across all states, creating economic efficiencies similar to the alcohol industry.

International cannabis markets present additional economic opportunities. Canada's federally legal market demonstrates that national legalization is viable, though it faces challenges from initial over-licensing and price compression. European markets are gradually liberalizing, with Germany implementing limited legalization in 2024. Mexico's ongoing legalization debate, if successful, could create the world's largest legal cannabis market by population. U.S. companies positioned for international expansion could see substantial growth, though federal prohibition currently limits this opportunity.

The medical cannabis market continues expanding alongside adult-use markets. The global medical cannabis market was valued at $37.0 billion in 2024 and is projected to reach $68.6 billion by 2033, growing at a 7.1% compound annual growth rate. Increasing research into therapeutic applications, pharmaceutical company involvement, and insurance coverage developments will drive medical market growth independent of recreational legalization trends.

Research and development in cannabis-related technology, cultivation techniques, product development, and medical applications will create high-skilled, high-wage employment. Universities are establishing cannabis research programs, biotech companies are investigating therapeutic compounds, and agricultural technology firms are developing advanced cultivation systems. This innovation economy around cannabis could prove as economically significant as the direct production and sales sectors.

Conclusion: Weighing the Economic Evidence

More than a decade of data from legalized states demonstrates that marijuana legalization produces substantial, sustained economic benefits. States have collected over $24.7 billion in tax revenue since 2014, with 2024 setting a record at $4.4 billion annually. The industry supports over 440,000 full-time jobs and generates billions in economic activity beyond direct sales. Law enforcement cost savings add further financial benefits while addressing social justice concerns.

The economic case for legalization extends beyond simple revenue generation. It encompasses job creation across diverse sectors, business development opportunities particularly for entrepreneurs, community reinvestment in areas harmed by prohibition, criminal justice reform and reduced incarceration costs, and tax revenue supporting education, healthcare, and infrastructure. These multifaceted benefits explain why states continue moving toward legalization despite federal prohibition.

Challenges remain, including federal-state conflicts creating banking and tax complications, regulatory complexity and compliance costs, concerns about public health and youth access, and market dynamics including price compression and illicit competition. However, states have demonstrated these challenges are manageable with thoughtful policy design, and the economic benefits substantially outweigh the costs when legalization is implemented effectively.

The question facing policymakers is less whether marijuana legalization helps the economy and more how to implement it effectively to maximize benefits while minimizing risks. The evidence from early-adopting states provides a roadmap: reasonable tax rates that compete with illicit markets, balanced regulation that protects public health without stifling business, social equity provisions addressing historical harms, revenue allocation supporting affected communities, and robust licensing systems preventing monopolization. States following these principles have achieved impressive economic outcomes.

For the 26 states that have not yet legalized adult-use cannabis, the economic opportunity costs of maintaining prohibition grow increasingly clear. Tax revenue flows to illegal markets rather than funding schools and infrastructure, employment opportunities remain unrealized, law enforcement resources continue focusing on marijuana rather than serious crime, and residents with marijuana convictions face ongoing economic barriers. As federal policy potentially evolves toward reclassification or legalization, states maintaining prohibition may find themselves increasingly economically disadvantaged.

The transformation of marijuana from prohibited substance to economic engine ranks among the most significant policy changes in recent American history. The economic data validates this transformation while highlighting the importance of thoughtful implementation. As more states legalize and federal policy potentially changes, the economic impact of marijuana legalization will likely grow even more pronounced in the years ahead.

Important Legal Disclosures

Educational Purpose Only: This article is provided for educational and informational purposes only. It is not intended as financial, legal, investment, or commercial advice. Readers should conduct their own research and consult with qualified professionals before making financial or legal decisions.

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Not Legal or Financial Advice: Nothing in this article constitutes legal or financial advice. The information about marijuana legalization's economic impact is provided for general educational purposes. Individuals should consult with licensed attorneys for legal advice and licensed financial advisors for financial guidance.

Industry Information Accuracy: Cannabis laws and economic data change frequently. While we strive for accuracy, readers should verify current information with official state and federal sources before making decisions based on this content.

Sources and References

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2. Federal Reserve Bank of Kansas City. (2023). "Economic Benefits and Social Costs of Legalizing Recreational Marijuana." Research Working Paper 23-10. Retrieved from https://www.kansascityfed.org/documents/9825/rwp23-10browncohenfelix.pdf

3. Chung, I. & Partridge, M. (2022). "Impact of Recreational Marijuana Legalization on Regional Economic Performance: Evidence from the United States." Ohio State University Moritz College of Law. Retrieved from https://moritzlaw.osu.edu/sites/default/files/2022-08/DEPC%20Grant%20Result_Chung%20and%20Partridge_August2022_0.pdf

4. New Frontier Data. (2023). "Cannabis Taxes Could Generate $106 Billion, Create 1 Million Jobs by 2025." Retrieved from https://newfrontierdata.com/cannabis-insights/cannabis-taxes-generate-106-billion-create-1-million-jobs-2025/

5. NORML. (2025). "Analysis: Legal Cannabis Markets Have Generated $25 Billion in State Tax Revenue." Retrieved from https://norml.org/news/2025/06/05/analysis-legal-cannabis-markets-have-generated-25-billion-in-state-tax-revenue/

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12. Congressional Research Service. "Marijuana Legalization and Regulation: Economic Considerations." Retrieved from https://www.congress.gov/crs-product/IF12529

13. Tax Foundation. "Marijuana Legalization and Taxes: Federal Revenue Impact." Retrieved from https://files.taxfoundation.org/legacy/docs/TaxFoundation_FF509.pdf

14. Rockefeller Institute of Government. "The Economic Impact of Developing the Adult-Use Cannabis Industry in New York." Retrieved from https://rockinst.org/issue-area/the-economic-impact-of-developing-the-adult-use-cannabis-industry-in-new-york/

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This article was researched and written with data current as of December 2025. Cannabis laws and economic statistics are subject to change. Readers should verify current information with official sources.