Indirectly he is. If you broke down that $500,000, you'd see that some of that money was to pay corporate income taxes, payroll taxes, payroll withholding, etc., and all of that went to the federal government. It averages around 22%, more in some industries, less in others.
Others of your ilk say that the 20-25% embedded tax things is WAY too high. Why don't you consult with your own "experts" and decide upon what you're going to claim???