PRO-CON: SHOULD WE LEGALIZE MARIJUANA USE AS A REVENUE MEASURE?

YES

Though seemingly a radical idea, legalizing and taxing marijuana would
not only help close the hole in the budget but also provide
much-needed jobs and help to farmers. Domestically grown marijuana is
the second largest cash crop in the United States, behind only corn.

Once the federal government decriminalized marijuana, all states would
have the option of legalizing it. States could be either "smoky" or
"clear," similar to "wet" and "dry" locales after Prohibition ended in
the 1930s. By legalizing this drug, the government would save the
money it currently spends fighting the war on marijuana. The
government could also raise revenues by placing an excise tax on
marijuana, much like the excise taxes imposed on alcohol and
cigarettes. Yet another source of revenue would be from taxing all the
income derived from the marijuana industry that currently goes
unreported. Adding up all the numbers, the federal government would
have additional revenues of $6 billion a year and the states an
additional $17 billion for a combined total of $23 billion a year.

Maureen Brown, Seattlepi.com

NO

Gee, how about collecting taxes from legalized marijuana as a way of
helping to deal with the deficit? Sounds great. Doesn't work.

We already have a working model for a legal intoxicant we collect
taxes for. The latest studies show that the U.S. gets about $8 billion
yearly in taxes from alcohol. The problem is, the total cost to the
U.S. in 2008 from alcohol-related problems was $185 billion, and the
government pays about 38 percent of that cost (about $72 billion), all
because of the consequences of alcohol consumption, according to the
National Institute on Alcohol Abuse & Alcoholism.

For every dollar the government collects in alcohol taxes, it expends
about $9 (for such things as Medicare and Medicaid treatment for
alcohol-related health troubles, long-term rehabilitation treatment,
unemployment costs and welfare). Does that seem like a model for emulation?

The legalization of alcohol is grandfathered in, and it is unlikely
that major changes will be made. The last thing we should do is
replicate this irrational business model.

Bob Stutman, for BusinessWeek