an idea who’s time and budget saving opportunity has come:
At the start of the 20th century half of all federal government revenue came from duties on alcohol, tobacco and playing cards. Two decades later, with newly-introduced income and business taxes, America could contemplate alcohol prohibition. Then in the 1930s, with the Great Depression weighing on tax revenues, booze was relegalised. Now, with alcohol and tobacco contributing just 1 per cent of federal receipts and 2 per cent of state incomes, the need for cash is helping to prod public policy along. Next month Californians will vote on Proposition 19 which, if passed, will allow the sale of marijuana to be regulated and taxed.
the ft’s lex runs some numbers and finds, in the cost saving potential in particular, attractive terms for a truce.