I'm sympathetic to the argument in principle, but it hinges on the system for assessing income of/collecting taxes from individuals being adequately rigorous and efficient.

The presence of loopholes, tax havens and other mechanisms (including corporations themselves) for hiding personal income means the bucket is very leaky.

Given that corporations have to maintain complete records of their cashflows and disclose them to investors and authorities anyway, using this data for intermediate tax collection seems reasonable.