The federal legalization of cannabis is needed now….
A lot of industries are struggling right now, but cannabis is being deemed essential. And because of the new jobs and staggering tax revenue the legal cannabis industry could create, there’s a case to be made for full legalization.
As our newest National Institute for Cannabis Investors Advisory Board member Charlie Devalle tells us, there’s still a massive black market for cannabis in the U.S.
And that’s a lot of much-needed tax revenue going uncollected.
Recent Cowen Investment Banking data reveals the “U.S. cannabis market is worth approximately $56 billion in 2020 with about 90% of sales going untaxed in the illegal market.”
Uncle Sam surely wants (and needs) a slice of that profit pie.
In Michigan, a new study showed that the state could haul in $500 million in cannabis tax revenue when the legal market matures.
And there’s another added benefit to full cannabis legalization.
Jobs, Jobs and More Jobs!
When the coronavirus pandemic is over, there are going to be people who can’t go back to their old jobs.
Cannabis opens up the door to a whole new opportunity; some folks may even be able to land a higher-paying job than before the spread of COVID-19.
For example, a BDA Analytics report recently stated that “legal marijuana markets are projected to reach $23.4 billion and employ nearly a half-million Americans by 2022.”
In fact, just this week one of our model portfolio companies announced it is adding upwards of 250 new jobs to keep pace with increased demand.
And these aren’t just plant-touching jobs, either.
The industry is creating a slew of ancillary employment opportunities, which is creating ancillary investment opportunities.
Building out the cannabis industry’s infrastructure is no small task and it will require “lots of labor, lots of steel and concrete, HVACs, jobs, massive real estate demand. It’s a big, big industry,” reports CNBC.
The writing is on the wall regarding federal legalization.
We just hope the folks on Capitol Hill see it, too.
April 20 2020