Earlier quoted context omitted.
My first thought was that "the system" is broken. It's too big and complicated. It's inhumane. And it's not just corporate tax law. Health care is a dumpster fire. Lots of overly complicated modern bureaucracies. We're not as smart as we think we are.
>We're not as smart as we think we are. We are, that's the problem. We find loopholes, we find edge cases, we bend rules to our benefit. Thus the bureaucracy must become ever more complicated to deal with our cleverness.
A loophole is just a more judgemental way of describing something you're allowed to do. Most discussion around the topic of tax loopholes revolves around entirely legal deductions. When you call something a loophole, all you're saying is "you're allowed to do this, but I personally thing that you should not be allowed to do this". Our tax system is a complicated, inscrutable mess because it was designed that way, not because it needs to be that way. You and I likely take advantage of many deduction "loopholes" that were created because creating a new deduction is less politically controversial than creating a tax cut.