The orthodox explanation is that with individuals, it is very difficult to distinguish between consumption and expenses incurred for the purposes of producing income. A business entity gets to deduct everything necessary to its upkeep because it exists solely for the purpose of producing income. A person, on the other hand, does not. Some part of what you spend on housing is attributable to your need to be near work, etc, but you have an interest in securing shelter for reasons that have nothing to do with your work.<p>As a practical matter, individuals do mostly get to offset the costs of producing income. Individuals who own houses effectively get to deduct the cost of housing through the mortgage interest deduction. Individuals who don&#x27;t own their own house probably don&#x27;t itemize either, and get the standard deduction. At $12,000 for a family, it probably a reasonable proxy for the component of living expenses attributable to the need to work to produce income.<p>There are some obvious gaps, child care being the main one, which is almost entirely attributable to working rather than consumptive.