Drug Money

By Cato Senior Fellow Jeffrey A. Miron and Katherine Waldock

This report estimates that legalizing drugs would save roughly $41.3 billion per year in federal and state expenditures on enforcement, and estimates that drug legalization would yield tax revenue of $46.7 billion annually (assuming legal drugs were taxed at rates comparable to those on alcohol and tobacco). With potential annual savings of $90 billion at stake, and as cash-strapped states face looming deficits, does the War on Drugs still make sense?

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