Why Tax loop holes should exist
How?:
Moderately wealthy individuals who use tax loop holes tend to be amongst the most clever and commercially productive individuals in the UK. They are also the most likely to remove themselves from the UK tax system altogether by moving abroad or trading from an offshore platform.
When you have access to a tax loop hole you have a sense of well being that makes that rest of the tax you pay almost enjoyable. With the Gordon Brown approach, whereby you squeeze the system into such a tight set of rules and regulations that paying tax becomes a frustration.
You might say, "tax is supposed to be a burden". I would argue that tax is a necessity but it doesn't need to be a chore. By having tax loop holes that I and many others like me don't personally take advantage of (generally because I can't be bothered), is giving me CHOICE - having choice means control - control of ones own life means freedom.
The reason for raising taxes in the first place is to give a better quality of life to the citizens of the UK. Eroding freedoms has the complete opposite effect.
By reducing my tax "choices" to zero makes me feel constrained and boxed in. I ask you - Which is most likely to improve the economy? A business man who is happily working with the system or one that sees the lack of choice as a lack of power and a lack of freedom.
Message to Gordon Brown and future governments: Loosen up the tax regime or the skilled, entrepreneurial people that make an economy work will all **** off.

