A mature marijuana industry could generate up to $28 billion in tax revenues for federal, state, and local governments, including $7 billion in federal revenue: $5.5 billion from business taxes and $1.5 billion from income and payroll taxes. A federal tax of $23 per pound of product, similar to the federal tax on tobacco, could generate $500 million per year.

Marijuana is legal for adults in 16 states and Washington, D.C. Medical marijuana is legal in 36. New York legalized recreational cannabis on March 31. New Mexico and Virginia are joining the fold, though legalization won't take effect in either state until the summer.

The list of recreational states includes the entire West Coast of the US, and the Northeast isn’t far behind. Now, the marijuana industry is beginning its transition into a legal, regulated industry and will soon compete directly with the $211 billion alcohol industry in the United States. (Beer ~50%, Liquor ~30% and Wine ~20%). Total sales reported by Forbes magazine in 2016 nationwide were $6.7 billion.