The loopholes just make it easier to funnel money away from the taxman. It's still possible due to how capitalism works and not fixable unless we go for something equivalent to nationalizing big companies.
That has the same impact as other, similarly radical solutions. In the best case the rich will just remove as much of their property from the country as possible. They might keep a villa or two, some cars, and some pocket money, but the majority of their income will be out of reach of the taxman.
Or they might just rent everything they need from a local branch of a company and pay a branch in another country, and the two interact via crypto. Or indirectly via remittances as there will be a market for asking low-income people to transfer money on behalf of rich people, as transactions of low-income people would probably not be taxed.
You can also tax where the asset ownership is recorded. Property records, securities records, etc. If it isn’t recorded with a public body where taxes can be assessed, it isn’t recognized. Wealth must exist on the books somewhere.
This assumes that there is only a single country on Earth or that the rich would not be willing to move to a country with lower taxation. Hint: they are already doing that.
Letting wealth of the rich grow so much faster than the growth of the economy is so much worse, because it means that the rich are increasingly draining poor of their resoruces.