US states hope cannabis legalization will solve retirement crisis
America is facing a crisis of pensions of frightening proportions ... To solve it, states need money, and quickly. A possible solution? Legal cannabis, and the income it brings into the coffers of the state.
Cannabis tax, the solution to the pension crisis in the United States
The pension crisis is what preoccupies lawmakers who are running out of money, as they plan to legalize grass in all states. But from now on, the tax on cannabis is proposed as the solution.
In Illinois, where the pension crisis in Chicago will require nearly a billion dollars in annual payments (for the next four years ...), Mayor Rahm Emanuel wants to send directly to pension funds, the tax on cannabis.
In New Jersey, where pension and debt bills are likely to be one-third of the budget by 2023, recreational cannabis could help tip the scales.
The future governor of Illinois, JB Pritzker, is in favor of legalization. And, some cannabis advocates claim this tax and legal solution could be done in less than 12 months.
Republicans, who are largely opposed to legalization, could be encouraged by a planned tax increase of 525 million dollars a year ...
The example of New Jersey
Le New Jersey already seems to have the solution in hand. At the end of last month, legislative committees approved bills to end the prohibition of cannabis.
Some criminal records related to cannabis convictions will also be deleted.
What legislators do not necessarily agree on, however, is the good point for taxation ...
In project in Illinois
In Illinois, Emanuel Rahm has a plan to fill the coffers of the city:
- Taxes on cannabis.
- A constitutional amendment of the state caps on certain benefits and revenues of a new casino.
But this will solve that part of the problem, the taxes on casinos and on cannabis will only generate 771 million dollars over five years.
The common tax on cannabis
Currently, the proposals set the cannabis tax rate at 14%. Governor Phil Murphy advocates a sales tax of 25%less than 37% of Washington State; and the combined 30% of Colorado, and consistent with that of Nevada.
To find a good compromise on the taxes to which cannabis will be subjected and to solve the pension crisis in the United States; states will have to harmonize taxation across the country. And maybe from this new tax, the United States can finance pensions without trouble, and throughout the country ...