The other point is that tax loopholes generally exist in order to spur economic activities that are beneficial to the country. Welfare doesn't do that, and gives people money for doing nothing.
This is exactly the opposite of how I see it. Tax loopholes exist to give wealthy people more wealth for doing nothing but being wealthy. Welfare exists to help poor people through tough situations in their life with the hope that they can turn it around and get back into the workforce. Obviously this is a gross oversimplification, but my point is, your premise (as with mine) is based in opinion, not fact.