That issue with tax breaks is the same basically everywhere in the world. In the US, you would typically have to talk to a professional to understand if you are eligible for so and so tax break, it's very easy to get it wrong yourself.
As far as labor laws, there are few developped countries in the world where they are more permissive for freelancers. In almost every single one of them, there exist even worse roadblocks.
That's not to say the process couldn't be improved, but the competition isn't so much better as one would think.
