It is therefore important for policy makers to recognize that tax preferences are not merely "loopholes" exploited by narrow interest groups or "earmark" that favor some congressmen's pet constituencies. Tax preference are social safety-net programs. They are middle - and upper-income entitlements. They are preferences for capital income. And they are incentives for activities -- such as owning a home, saving for college, or investing in new research -- that many believe enhance our society. Given these realities, we should not be lulled into believing that cutting tax preferences will be as painless as closing a few loopholes. Such cuts will be as politically painful as cutting popular spending programs.