I don’t think it’s because anyone has resigned themselves to thinking all rich people are cheaters who will win. I think we use tax incentives in the US primarily because of two beliefs - the first that the private market is often more efficient than public purchasing (which has a pretty poor showing from this article, as you point out!), and the other is that people can choose how to contribute some of their obligations back to society from the set of taxable deductions. We want to softly encourage some behaviors and discourage others, and adjusting taxes work well as a lower risk lower force way to do that.