You might want to revisit that analysis.
Small business', corporations, etc. contribute the bulk of the tax dollars into the system, much more than the contributions of the collective of individuals in the population. Considering that a corp is basically considered an 'individual', it is treated in a like manner by the CRA... In the eyes of the tax dept, it is more more level of tax-transaction from which they glean dollars. Granted, corp entities are capable of more access to write-downs, but they never recapture the full value of those deductions (dollar for dollar), that's where the gvt generates their cut.
While I appreciate that it is the end user (consumer) that foots the bill for everything, the reality that competition forces prices in a specific direction is what really drives the bus in this equation.