I agree that there may be an issue of fairness when it comes to the distribution of dividends to family members and the conversion of income into capital gains.  These steps result in tax avoidance.  Have at them.  
However, taxation of passive income on retained earnings is short sighted.  There are a great many corporations that retain earnings in good years in order to cover costs, including employee salaries, in lean years.  
A business needs the ability to plan over longer periods of time.  It also seems logical to grow those retained earnings through investment.  Increased taxes on these retained earnings (some say 73%) will cause owners to take the earnings as larger income and pay their "fair share", while leaving less in the corporation. 
In the lean years, with less business revenue, the owner will resort to cost cutting and layoffs, or will borrow and assume risk in order to make payroll etc.  
The  unintended consequence may be fewer jobs for the "tax disadvantaged".