Exploiting tax loopholes is like hacking the financial system. And this kind of hacking should be punishable just like black-hat computer hacking is.
Using a system (or the law) in ways it was not intended to be used can be considered hacking.
Using a system (or the law) in ways it was not intended to be used can be considered hacking.
This is part of the reason the best tax system is one that is super simple. Once you add in exceptions and complexity, you necessarily create loopholes. Government needs to be humble about the reality that the adversary will always be smarter and willing to work harder.
But often the lawmakers themselves exploit these loopholes. A big part of the problem is that the "adversary" includes the people making the law, which does not create well-aligned incentives.
Note - it’s still legal.
So your idea is to punish people for doing legal things?
Claiming "whatever tax credit" is not a "loophole" but merely claiming what the law allows you to claim.