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There's definitely an overhead to tax breaks.

There's a difference between simplifying the tax code, which would theoretically reduce overhead, and providing an itemized tax break, which actually increases complexity (and yes, there's enforcement of that tax break too).

Treating a tax break like government spending seems completely rational.

Even if a tax break is simply lowering a marginal rate (which it rarely is), it's not like enforcing a 36% tax is less costly than enforcing a 40% one.

"Not taxing" also includes overhead for ensuring that people aren't abusing the deduction or exemption, or the societal/political costs involved in the perception that select few get a free pass (i.e. overshore tax shelters).

Now that I think about it a little more, this seems like a red herring. Just because the budgeting office says two numbers are the same on paper, doesn't mean anything about the efficacy of the policy, for or against.

Those externalities are already being paid.