That would force the government to want to raise real wages real quick once they realized they were no longer getting significant income tax.
The idea is that the corporate entity is a productive enterprise and you are not entitled to take from it’s gross revenue but only it’s net profit.
Likewise, a household also seeks to be a productive entity and should be able to deduct all the necessary production expenses associated with it’s assets.
You are the asset. Your labor.
You require maintenance, fuel, storage, and transportation to the job site.
These are the expenses associated with the assets of your business enterprise.
Money and time invested in your children is an expense developing the next production model of your household enterprise.
Your time has a labor market value associated with it. Any necessary time spent doing things required for your household business enterprise is money you aren’t making by labor. So it should be considered an expense that the household corporation is paying you to do something else besides generate revenue.
Deduct from your income food, rent, car, gas, home energy, child expenses, necessary time expenses, etc.
How much is profit left over?
Tax a flat percentage of that at the corporate rate.