[yieldcrv]

In a diverse economy with many sectors, having a tax system that incentivizes participation and capital movement towards some sectors is beneficial.

velocity within an economy is more important than public coffers, especially when the attempts at management are distributed to the private sector, compared to a single flawed attempt centralized at the public sector. In systems like the US, the distributed risk takers compete with the centralized attempt or simultaneously collaborate with it.

The "loopholes", some of which are indeed loop holes, function to incentivize certain behaviors. In almost all cases, someone that wants to simply accumulate cash will be taxed the heaviest, the entire system is saying move it around in specific ways, keep the velocity high. create, invest, hire.