By legalizing Drugs and Prostitution we will be increasing government income without raising taxes and reducing the deficit by lowering costs of trying to enforce existing laws.
By controlling the markets and taxing the sales of drugs as well as collecting licensing fees from the drug sellers and prostitutes we will be increasing income on state and federal levels. This will also force all prostitutes and drug dealers to become income tax paying citizens.
This will eliminate the costs of the "war on drugs" as well as enforcing prostitution laws.
As an added benefit we will be able to give those that are abusing drugs or prostitution easier access and education to help them become responsible citizens as well.