Marijuana’s legalization in Colorado and Washington will lead to huge revenue growth for those states’ governments, according to research firm IHS Global Insight.
“Based on our forecast, the state and local government sector’s share of gross state product (GSP) will grow by 5.0% in 2017 in Washington, and 1.7% in Colorado,” wrote IHS economist Steven Frable.
That revenue will prove especially helpful for Washington, which is currently running a 20 per cent deficit. (Colorado’s deficit is only 2 per cent.)
Here are the graphs:
IHS cautions that the legalization referenda still face legal challenges that could make these projections moot.
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