However, as Jessica Rabe of DataTrek Research wrote in a report, “When the COVID-19 virus subsides, there is a simple and effective way to help states and cities make up for their huge budgets shortage: legalizing recreational sales of marijuana. “
According to the comptroller of the State of New York, New York is the center of infection for COVID-19, and its revenue may be less than expected by $ 4 billion to $ 7 billion. With a budget of $87.9 billion, that’s significant.
Rabe wrote: “We have been thinking about how life would change after being infected with the virus. The biggest change is that the state and local governments will encounter unexpected huge tax shortages. On the pressure of the consumer balance sheet and massive layoffs situation, it is especially true in terms of sales and income tax. Unlike the federal government, states cannot print unlimited amounts of money. “
Rabe pointed out that the legalization of cannabis for adults may be a simple and effective way to increase the tax base without expelling people out of the state——the way of raising income taxes often does. It has successfully raised hundreds of millions of dollars each year in the state like Colorado. Currently, 11 states have legalized recreational cannabis, and another 15 states have legalized drugs in some way.
A key push toward legalization
Although Andrew Cuomo, the governor of New York State, has not succeeded in advancing the legalization of legislation, conservative estimates indicate that the bill could bring up to $ 1.3 billion in revenue per year.
Rabe said: “If Colorado can raise more than $ 300 million a year from entertainment and medical marijuana sales, New York can definitely make more than $ 1 billion as long as the state taxes and regulates adult-use sales reasonably.” Compared to California ’s unreliable income, Colorado ’s results are much better than California ’s.
Considering that the medical marijuana pharmacy opened in 2016 has established infrastructure, which may create relatively simple to implement if New York seriously considers using marijuana to make up for the loss of income.
As Rabe sees, the coronavirus pandemic may make New York a crucial step toward legalization.
She concluded: “The economic impact of this virus may be enough to allow some states, such as New York, to eventually get enough votes to pass this legislation. Although we recognize that legal cannabis is a controversial topic for many people, that COVID-19 caused the budget shortage may affect perceptions on this issue. “
Many researches had found cannabis may heal coronavirus in some ways, though it is controversial at this time. If the coronavirus is continued to affect the economy in the U.S, the government will most likely legalize recreational cannabis, in order to boost the tax and income.