The drug cartels would never go for it. Suburban America is their bread and butter, the inner cities are just the hubs of their distribution networks. You could try to concentrate all the drug users and abusers in one place, but dealers will still continue to sell where the margins are high. In the end taxation would just reduce the drug traffic to Staten Island to a crawl, but everywhere else traffic would pretty much stay the same.
Prohibition may not reduce drug use (as far as anybody knows), but legalization would do no better.
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