Actually you are quite wrong. You can carry forward losses and that has been a part of tax law for a LONG time. The problem with individuals is that many of them can't really have losses because they don't have the ability to go below zero unless they have other than normal W2 income. You can't really get a negative W2. Now if you invest $50,000 in a company and it goes bankrupt, you can apply that $50,000 loss against future income until the loss is all gone (even into future years). I know this is true because I has a lady embezzle a rather tidy sum from my company and the carry-forward loss took several years to use up on my personal return. That is what the companies are doing. Take this very important tenant of tax law away and corporations would not invest in many ventures that might not pay off the first year. They aren't cheating, they really lost the money. They are just recognizing that fact when they finally do make money. This doesn't make them money in any way and they eventually have to pay taxes on all of it. They aren't getting any "free lunch", it is just fair and I doubt hardly anyone with any experience in business would refer to this as a loophole.
As to reducing the deficit: the US government now pays around $400B per year about 1/6 the total budget yearly in interest. If we keep borrowing $1.5trillion per year (what will be borrowed in 2010) soon that number will so large that it is unserviceable debt. That is why we MUST fix the deficit. We can chip away at the debt over time (just like you would do as an individual if you found yourself in this situation), but we must not continue to spend more than we make first. Then let's see if there are ways that make sense to everyone involved to increase revenues. The old saying goes "When you find yourself in a hole, STOP DIGGING"
As to your second point. The government doesn't have the responsibility to give anyone (except for the mentally/physically disabled) anything. That is the job of the individual, their churches, and their families. This is a fundamental difference in belief between liberals and conservatives. We can't pay people not to work, supply them with unlimited medical care with prescription coverage, pay them to have children out of wedlock, and expect it all to work out. They are provided a free education and if they are truly poor, financial aid and pell grants are available for post-secondary education. Having worked my way through school and then paying off my student loans after, I know it can be done.