How ligalization of currently illegal drugs impacts revenue? Taxes disorient the market outcomes as buyers of goods pay more while sellers receive less. Taxes also have an effect of disorienting market efficiency. This is because it disrupts the equilibrium between demand price and supply price. It also affects the purchasing power of people in a country as well as their ability to consume.
Illegal drugs are those substances that are prohibited by law. Some of the illegal drugs in the
United States include cocaine, heroin, marijuana, methamphetamine, and oxycodone. A study conducted in 2014 showed that Americans spend approximately $100 billion every year on illegal drugs. As of 2013, the organization of American States
estimated that the sale of Cocaine generated about $35 billion. This means that
the government can generate a lot of revenue if it legalized the sale of drugs in the country. It is
worth noting that most of the drugs in America originate from Mexico.

The government should not legalize illegal drugs for several reasons. One of the reasons is that
legalization of drugs could overwhelm rehabilitation centers in the country.
Rehabilitation centers in America are inadequate and are not also fully equipped. Therefore,
legalizing drugs could see the collapse of rehabilitation centers. Secondly, legalization of illegal
drugs could increase the rate of addictions and substance abuse disorders. This
means that although the government could collect more revenue from the drugs, much more than
the collected amount could be spent on treatment of substance abuse disorders and addiction.

Interestingly, legalizing drugs could make drugs much cheaper than they currently are. The
limited supply of illegal drugs is responsible for their high prices. This means
that increasing the supply of drugs through legalization could see a decrease in demand and
consequently, a decrease in their prices. Additionally, legalization of illegal drugs could also
increase drugs acceptance, availability, and use in society. This could increase
the number of deaths associated with drug use and vices such as crime, rape, and immorality. APA