It turns out that recreational marijuana taxes aren’t the panacea for Colorado’s budget challenges, writes economist for Colorado Fiscal Institute in The Denver Post. In fact, much of the revenue is spent on addressing issues caused by marijuana legalization.
Why pot taxes can’t solve Colorado’s budget problems
By CHRIS STIFFLER
PUBLISHED: August 12, 2016 at 9:27 am | UPDATED: August 15, 2016 at 11:10 am
“What do you mean the state has budget troubles? What about all the tax money from marijuana? Wasn’t that supposed to solve everything?”
As a nonprofit devoted to educating Coloradans on the state’s unique fiscal challenges, we get that question almost every time now. It doesn’t matter what group we’re talking to about the state budget or which community in Colorado we’re visiting.
Ever since recreational marijuana became legal, there has been a seemingly unstoppable urban myth going around that the state is positively swimming in tax revenue from pot sales.
Let’s dive into that pool and get some real numbers.