The proper term is, "we didn't raise taxes but we generated new revenue".
And there is no such thing as a tax loophole. If you followed the tax code you did nothing shady or illegal.
Loophole -> An ambiguity or inadequacy in the law or a set of rules.
So, nothing shady or illegal. Just someone taking advantage of a poorly written law. Still a loophole though because it was not part of the intention of the drafters of that law to allow for that particular deduction or avoidance because they did not know it was there.