To me it just feels wrong to incentivise living a certain lifestyle by getting a discount at just existing. It is great when it incentivises the things you want, such as hybrid cars or something, but what would happen if someone wanted to give you a discount for purchasing gas cars when they become less common because of relations to the oil and gas industry?
Or maybe tax incentives for purchasing private telecom service if/when municipal networks ever become commonplace?
If you they can lower tax liability for a certain amount why not lower it to the actual level needed across the board instead of keeping some cushion to give away coupons?
Whether or not we can imagine a world where buying a gasoline-powered car or private telecom is considered a social good is less of an issue than whether we want to be able to incentivize those things should they become necessary.
It shouldn't be the IRS's business to reward people. If there is a reward for doing X then there should be a fund specifically for giving money to people in those scenarios completely independent of taxes.
Its much more transparent to say "we have a fund for X, mail us the required proof and we will send you a check", then it is to add layers and layers to the tax code. That also means everyday people are aware of what our representatives are arguing about and the dollar amounts being held responsible for the programs.
Then we get simple taxes without all of the itemizing nonsense.
Would you argue that potato chips shouldn't be taxed, or that produce should be?
If there is some reason you report produce on your tax documents then no, it should not be there.