You make a good point. Additionally, you should see a huge incentive for companies to ditch employment arrangements for contractor arrangements (e.g., independent contractors in the US) because they could sell it to employees as a tax savings. That would result in even fewer taxes, so the revenue hit to the State would be even larger.
I don't know about every country, but the US treats LLCs (Limited Liability Companies). There is no corporate tax; profits are passed through to each member (the LLC equivalent of a shareholder) [source: http://www.nolo.com/legal-encyclopedia/how-llcs-are-taxed-29675.html]. The passed-through profits are treated as self-employed income and taxed as such.