MORE Act Could Bring In $13 Billion In Tax Revenue If Passed

The Congressional Budget Office and the staff of the Joint Committee on Taxation estimate in a new report that H.R. 3884, otherwise known as the MORE Act would increase revenues, on net, by about $13.7 billion over the 2021-2030 period by creating business income, compliance, and occupational taxes; those increases would be partially offset by allowing certain deductions for business expenses associated with trafficking controlled substances.

The MORE Act would also federally decriminalize cannabis (marijuana), expunge the records of people convicted of federal cannabis offenses, and require resentencing of some federal prisoners. As a result, CBO estimates, thousands of current inmates would be released earlier than under current law. In the future, decriminalization also would reduce the number of people in federal prisons and the amount of time federal inmates serve. In total the report said that over the 2021-2030 period, CBO estimates that H.R. 3884 would reduce time served by 73,000 person-years, among existing and future inmates. CBO’s analysis accounts for time served by offenders convicted of cannabis-only crimes and by those convicted of another crime in addition to a cannabis offense.

All of these released prisoners though could impact federal programs. Federal prisoners generally are not eligible for federal benefit programs. By reducing the prison population, CBO estimated that the MORE Act would increase the number of federal beneficiaries, compared with current law, and thus increase direct spending for federal benefit programs by $636 million over the 2021-2030 period.

The legislation, if passed, would also impose an excise tax on cannabis products manufactured or imported into the United States, which would be deposited into the Opportunity Trust Fund established by the act. CBO estimated that the Department of Justice would spend about $3.0 billion from the fund over the same period to provide job training and legal aid, among other services, to people harmed by the “war on drugs.” The Small Business Administration would spend about $2.7 billion over the ten-year period for state and local grants to make loans to cannabis-related small businesses that operate in the cannabis industry and help governments develop cannabis-licensing rules.

Leave a Reply

Your email address will not be published. Required fields are marked *

Don't Miss This Week's Groundbreaking News

Join the thousands of subscribers who stay informed with GMR's exclusive news briefs delivered directly to your inbox every Friday afternoon.

We respect your privacy. See our privacy policy.


About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

@GreenMarketRpt – 11 hours

New Report from ⁦@headset_io⁩ Says Medical Cannabis Consumers Spend More. New story from ⁦@julsaitch⁩

@GreenMarketRpt – 12 hours

Yowza. Be careful when investing in crowdfunding deals. SEC files complaint against CEO and others for…

Back to Top