Legalizing Marijuana: Impacts on Prison Systems and the Economy - DailyFinance

Legalizing Marijuana: Impacts on Prison Systems and the Economy - DailyFinance

Legalizing Marijuana: Impacts on Prison Systems and the Economy

By Danny Guttridge, Kapitall, The Motley Fool

Posted 1:16PM 04/23/12 Posted under: Investing

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Over the past few years, there has been a lot of talk about the legalization of marijuana and how it would affect our economy. Some numbers point to the reduction of government costs of prison sentences, while others point to taxation and additional revenue streams. Some people think that the federal government is wasting resources by keeping the drug at a Schedule I level, and prosecuting those caught with it. Other people think that legalizing it would be a boon to the economy.
According to Forbes, the IRS has been at the forefront of the crackdown on medicinal marijuana dispensaries, but not because they've been baking their books -- they've actually been paying their taxes. It's because of a federal targeting effort to shut down the industry.
Even state and local governments disagree with the attack, though. The legalization of marijuana can open up the possibility to regulate it. That regulation implies the opportunity to tax the drug, and it also makes law enforcement easier. The localization of the growing process can help to weed out drug dealers, gangs, and cartels as well.