Is there a political ideology/philosophy that says everything currently illegal should become legalized, but controlled?

Yes, there is an ideology. It is generally called liberalism. Liberals want to maximise the freedom of a population. Depending on how you conceptualise freedom you will be one of three kinds of liberal.

Some liberals want negative freedom which Isaiah Berlin defines as the 'absence of external restrictions or constraints', these are known as classical liberals. The idea is that if the state leaves people alone they will be free to do as they choose and thus be free. So that would be in keeping with your idea about legalising substances and prostitution.

Some liberals want positive freedom for a population which has been called 'self-realisation; the achievement of autonomy and development of human capacities'. So that, I imagine, is in keeping with your idea about taxing goods in order for the state to spend money on things like education and healthcare.

Some liberals, now derogatorily called neo-liberals, think that classical liberalism is very good in that it creates freedom of choice but that positive freedom is very very wrong. They think that all restrictions should be taken off the market in order for the economy to grow and allow for maximum freedom of choice. They think that tax and state spending and borrowing essentially destabilises the market.

Conservatives criticise liberals for placing the value of freedom above everything else. They argue that there are many virtues that ought to be aspired to and a blind devotion to one will cause imbalance in the society and the human psyche.

Socialists criticise liberals for having a simplistic view of freedom. They argue that not all freedom is about not being restricted and being able to choose. We are not just law abiders and consumers, we are also friends and above all we need freedom to enjoy working.

/r/Ask_Politics Thread