1. Tax is not zero-sum. They take as much as they can from everybody.
2. Any additional spending would likely also have zero benefit to most people.
3. Greater tax income is only used to take on larger debt, which gets paid for mostly by wage workers.
I am against loopholes for a different reason: they are anti-competitive, essentially a government-granted monopoly on investment and participation in the economy. But even a more “fair” tax is mostly a bad idea.
Taxation is an anachronism. It is an inefficient and coercive way to fund public goods, and even now it’s a relatively small part of cash flow. The most efficient and effective way to finance the government is through bond sales. We don’t need taxes. Seriously, we don’t. Last year, the treasury collected $17.8T from bond sales and $4T in taxes. Bonds are valued by debt (liabilities) to GDP, so ask yourself how much real GDP growth would come from tax elimination.
This should not be just a theory. It requires no modification to the constitution, and no operational changes outside of the treasury, which mostly just keeps doing what they’ve been doing already to fund the government. Congress sets the debt limit. Treasury manages bond sales. Nothing changes. My friends at the IRS might need new jobs, but I got this idea from them anyway.