Also without seeing more of the detail of the analysis there are perfectly reasonable cases for this, e.g. A company with 1 employee (the CEO) has a profit of $

Also without seeing more of the detail of the analysis there are perfectly reasonable cases for this, e.g. A company with 1 employee (the CEO) has a profit of $1,000,000. This company pays corporate income tax on the profits. The next year the same company decides to take all of its profits and pay them to the CEO (he's the only employee). Now that company supports this statistic (pays no corporate income tax since there is now no profit so by definition pays the CEO more than it pays in taxes), but now the CEO pays personal income tax on that profit. This is by design in the US tax system isn't it? I don't see anything wrong in this case. I realize that you can make it less clear by adding in some kinds of equity compensation and other benefits.