You say this as if companies spend all their waking hours making decisions based on income tax consequences. Businesses do not try to make less money due to tax consequences. Businesses consider tax consequences in major decisioins, but there are dozens of criteria that are evaluated. Few decisions are made purely for income tax consequences.
By your admission, some are. And by your admission, tax consequences affect most decisions. Again, do you see that choosing to be less productive due to tax consequences as a cost?
If it is no longer worth it to produce due to the income tax, do you see that as a cost of the income tax system?