It appears fair to say that an increase in total government size of ten percentage points in taxrevenue or expenditure as a share of GDP is on average associated with an annual lower growth rate of between one-half and one percentage point.
Despite these handicaps, within three years expenditure growth had been contained, tax rates had been cut significantly and revenue increased by nearly a third.
One frequent argument for legalization is that it will generate a fiscal windfall by reducing expenditure on marijuana arrests, prosecutions, and incarceration and by allowing the state to collect taxrevenue on legalized sales.