The U.S. has one of the highest corporate tax rates in the industrialized nations. We are around 35% or so.
You are wrong in several respects there............our corporate taxes are around 40~50%.

The answer is that an Indian will work for $800 a month whereas his US counterpart will want $800 a week.

Over the years I have filed corporate tax returns for the US, Canada, Australia, South Africa and most Western European countries and I can assure you that direct labour costs are totally deductible in calculating taxable revenue

The issue is expected compensation levels, no more, no less.