Let's Replace Tax Deductions With Direct Subsidies

Bloomberg, Tax System Is America’s Biggest Spender, by Betsey Stevenson & Justin Wolfers (both of Wharton):

Here’s our proposal: Let’s replace all tax expenditures with explicit subsidies -- that is, with actual federal payments -- so we can really see the costs and debate all spending programs on an equal footing. Doing so would help us answer crucial questions, such as whether we get more bang for our buck by subsidizing homeownership or by spending more on schools.

• Freakonomics, Tax Deductions or Tax Expenditures?