Potential Economic Growth Anticipated From Cannabis Legalization, Says Cannabis Attorney Charles X Gormally
Legalized recreational marijuana would have tremendous economic benefits to states, believes cannabis attorney Charles X Gormally. In his own state of New Jersey, marijuana legalization legislation has not been passed, which is frustrating to Charles X Gormally, who sees the benefits it could bring to New Jersey.
In New Jersey Gov. Phil Murphy’s budget proposal for 2020, an estimated $60 million of revenue was created if marijuana was legalized. Charles X Gormally said states can prosper from the cannabis industry in several ways.
First, the industry would create thousands of jobs in the state, according to Charles X Gormally. As with any new business opportunity, construction, agriculture, sales, real estate, and more jobs would become available with this industry. More jobs in any state would encourage people to move to the area, thus boosting the economy, and provide opportunities for those who are unemployed or underemployed.
Another economic benefit would be the stimulation of local real estate markets in undesirable business locations, Charles X Gormally said. Since those real estate markets are “fertile ground for the cannabis business,” real estate would become more desirable in those areas and the housing economy would only improve, Charles X Gormally believes.
An obvious economic benefit to the cannabis industry is the millions of dollars it would provide in tax revenue for the state and its municipalities, according to Charles X Gormally. Investopedia says that if marijuana were federally legal, reports suggest it could generate an additional $131.8 billion in aggregate federal tax revenue by 2025. On a smaller scale, the cannabis industry in states has a profound impact as well. After Colorado legalized marijuana, the state collected more than $135 million in taxes and fees on medical and recreational marijuana in 2015.
Still, another benefit is the money that would be saved in enforcing marijuana laws, Charles X Gormally pointed out. Investopedia reports that federal marijuana enforcement costs the country billions each year. If marijuana was no longer considered a controlled substance, there would be a significant drop in court cases revolving around cannabis and money would be saved.
Because of the economic impacts the cannabis industry would have on a state and federal level, Charles X Gormally champions the cause and supports a change to legislation in his state, New Jersey, and advocates it becoming the next state to welcome the benefits legalized marijuana would provide.
For additional information about Brach Eichler’s Cannabis Law Practice, contact Charles X Gormally, member co-chair, at (973) 403-3111.