A sole proprietor landscaper making $45-50K a year in California is paying $675 a year in annual registration fees just to keep his newish pickup truck on the road. Why newish? Because the people he's servicing trust a guy with a nicer work vehicle than a beaten down 30 year old Tacoma.
A $900k developer with the same pickup is also paying $675 a year.
Extrapolate this seemingly trivial example across literally EVERYTHING in life.
And sure they are paying double payroll tax, but they also get to deduct all their expenses associated with employment (customer dinners, internet, computer equipment, mileage to customers, etc).