Proft = income - expense.

When you pay people to get work done for a business, that paid work is an expense.

You can deduct expenses from your income to calculate your profits.

IIRC the problem is that software development is not being classified as an operating expense, now, but rather a "research" capital expense, and the deductions then have to be amortized over a number of years.

You're confusing corporate vs personal taxes. The salaries businesses pay are meant to be deductible business expenses. The business only pays taxes over the profit after these expenses are deducted from their revenue. The person receiving the salary still owes personal taxes over the income.

Company earns $X revenue.

Company pays staff $Y in compensation to earn that revenue.

Company pays other expenses of $Z.

Company does not owe tax on $X, but rather on something closer to $X - $Y - $Z.