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We can look at alcohol, which is heavily taxed, probably 10 times more expensive than the market price w/o taxes. Despite its high cost, we don't hear about robberies to obtain alcohol, even though overdose is only a few times more than desired dose and the withdrawal can be fatal. The hospital every day/night has people in with alcohol overdose, addiction, or long-term abuse issues. That's what we would get if we decriminalized other powerful drugs. It's not good, but what we have now isn't working great either, and it's a justification for the gov't to intrude into everyone's lives.
Even implementing such a deal in a small way would instantly solve budget problems. All spending could be divided into helping people and stopping evil-doers. Cut 20% from each one, and budget problems are solved. There's nothing more Republicans appear to like more, though, than punishing evil-doers; apparently b/c it makes them feel better about whatever hurts them in their life; so it would be tough sell. Sorry for the cheap shot. They get one cheap shot about me having a bleeding heart or whatever.
The point is they could come to a compromise that shrinks gov't. Instead they make compromises that one side keeps its nutrition programs and the other side keeps its military bases.