Interesting philosophy. You'd want low corporate taxes but high personal taxes, I think, for such a scheme.
Nope, the opposite. Corporate taxes are applied to operating profit, that is, the profit left over *after* you've paid for everything, not gross profit, the money you take in minus direct costs.
Let me take for example the cost of an employee. The difference between the total cost of that employee and the corporate tax rate is the effective cost of that employee. This is a simplified model I'm about to use, but it gives the general idea: If your corporate tax rate is 25%, and the employee's salary, compensation package, etc, comes to $100k a year, you would be paying $75k of it out of profit. However, if your corporate tax rate is 50%, you are only paying $50k out of profit.
This is one of the reasons why nations with the highest percentage of workforce also are nations with high corporate tax rates. China has one of the highest, with, between its various tax codes (China applies 6 different taxes on a corporation) adding up to 62% as of 2011. I understand it has dropped to 53% aggregate since then. Germany, an economic powerhouse, has a total aggregate of 56.9% for manufacturing.
It seems illogical if you don't understand corporate tax structure, but if you do, it is clear, higher corporate taxes means lower costs for employees.
