Whenever a plan for tax simplification suggests elimination of the mortgage interest deduction, most people have an immediate negative reaction and decide reform is a bad idea.

But that's the wrong attitude. It's worth listening to the entire discussion to see the big picture and learn about the net effect of any tax-reform proposals.

A panel charged by President George W. Bush with making recommendations for reforming and simplifying the federal tax code made its preliminary report this week in advance of the full report's scheduled release next month.

The need for serious reform and simplification of the federal tax code is obvious. It is estimated that Americans spend a total of 6 billion hours and more than $100 billion a year complying with the ridiculously complex federal tax code, which now spans more than 60,000 pages.

Congress, not the Internal Revenue Service, is to blame for the complexity. The tax code has become a favorite place for lawmakers to reward favored constituents and campaign contributors with special breaks and loopholes.

Because the tax code is so complicated, more than half of the U.S. population hires a professional tax preparer to complete their federal tax filings. For the vast majority of Americans, that should not be necessary.

Because the current tax code is jam-packed with special tax breaks, most of which target politically connected businesses and wealthy individuals, reform is an uphill battle. This is especially true when lawmakers are in the midst of congressional campaigning and incumbents don't want to upset supporters by eliminating lucrative loopholes.

Still, average Americans should listen to news reports and analysis about tax reform and look at the net effect of reform recommendations. Instead of only worrying about the loss or capping of the home mortgage interest deduction, it's important to look at what other loopholes, breaks and credits could be trimmed.

If most taxpayers' overall tax bill was about the same or less, and if simplified rules were to result in less time being required to fill out and file tax returns, then reform deserves more support — especially if simplification strips away the scores of lesser-known deductions and loopholes benefiting a few businesses and well-heeled or well-connected individuals.

Another issue any reform effort should address is compliance. With millions of Americans operating in the so-called underground economy, where income is not reported to the IRS, reform should include some efforts to force more people to pay their fair share. This might mean some kind of national sales tax, which would be paid by even those who now do not file returns with the IRS or dramatically underreport their income.

Real reform is a long shot because so many different groups have a vested interest in keeping the current loophole-ridden code.

Beyond making life simpler for average taxpayers and making taxation more fair and equitable, real reform and simplification would allow the $100 billion a year now spent on complying with the complicated tax code to be redirected to more productive economic activities.

The potential loss of popular deductions should not shut down the tax-reform debate. Details of the entire package should be explored and debated, but not without remaining aware of the current compliance costs and inequitable loophole distribution favoring the powerful few at the expense of the average taxpayer.

The current tax code is a complicated mess. It favors a minority of well-connected businesses, industries and individuals. Dramatic reform, which focuses on simplification and fairness, should be supported by most Americans.