"Now we have an example of an individual who is pulling $500K in individual earnings from an S corporation failing to take "personal responsibilty" by restructuring into a more advantageous tax position and its the government's fault"

I am sorry but I do not understand this sentence. If you are talking about an Scorp owner/employee who pay himself a salary of $500k, that person is taxed on $500k. If you are talking about an Scorp owner/employee who pays himself a salary of $350k and also has to recognize his share of the business income that amounts to another $150k, he has a personal liability on the entire $500k. I am not sure what your point is. The government is getting their money, more than enough frankly. In some instances even, an Scorp may generate "income" which is passed through to the owner/employee, but it may not generate the equivalent in cash flow, and thus a distribution from the corp to cover the individual tax liability on the portion of the income that is flow-through may not occur; then the owner/employee has to dig even deeper into his own pocket to satisfy the leaches. At the same time of course said owner/operator needs to continue to retain/hire employees, fight intrusive government regulation, fight the trial lawyers who never generated an ounce of GDP, all for the pleasure of finally stepping out onto the un-level playing field of world markets ----- oh joy.

All the while half the population pays no income tax ............ talk about personal responsibility.