You are confusing income with revenue. Business pay taxes on profit. Profit is revenue less expenses. Wages are part of that expenses.
But given the treatment is only provided to incorporated citizens then I would have to say yes it is a subsidy.
Are you trying to claim all businesses are subsidized? Do you want them to pay taxes on revenue? That would mean taxes on top of taxes as each item a business purchases would be fully taxed and also for the business selling the same items.
Nope I want wages to be taxed as they should be - as an equal exchange of labor for $ without a profit.
Only profits should be taxed. So if purchased goods/services aren’t double taxed then why are wages paid by the business? Answer - because the wage double tax is born by the employee rather than the business and the taxman can get away with it.