Revenue generated by the Oregon Cannabis Tax Act (OCTA) is three fold. The initial cash flow will be generated by the adult commercial sale of cannabis in retail stores in Oregon. This alone will create millions in revenue for the Oregon General Fund because 90 percent of the profits go directly to the General Fund. The chart below displays how the fund works. The remainder of the profits are set aside for drug treatment and education as well as setting up a state level committee for the promotion of industrial hemp. Hemp is the second tier of income from OCTA.

Hemp is by far one of the most useful plants on the planet. This is a plant that makes paper, fabric, bio-diesel, plastics, building materials and the bi-product is healthy food. No wonder logging, tobacco and coffee have been opposed to legalization for so long. Hemp will become Oregon's next cash crop. When you consider the fact that one acre of hemp can produce three times more paper than an acre of the most paper producing tree it seems silly to use trees for paper at all. Oregon will see jobs in the sustainable industry sky rocket as we become a national leader for sensible legislation. The third tier of revenue for Oregon comes from the redirection of funds saved by ending prohibition.

According to a Harvard study by Jeffery Miron, Oregon spends $61.5 million dollars enforcing out-of-date cannabis and hemp laws. Imagine redirecting that funding to schools, healthcare or solving real crimes!

For comparison sake; Oregon's lucrative micro-brew industry contributes $2.2 billion to the state annually. Imagine what cannabis and hemp will contribute to this state. It's time to move forward in Oregon and capture revenue that is already out there, not tax the middle class while dangling schools and public safety over our heads.

2011-2013 Governor's Balanced Budget