You can see the owner/investor takes home $1.20 of the burrito sale as income. If you tax the owner/investor 20 cents more on his income, the burrito is going to cost $20.20.

No evil intent, the simple reason is that an investor can purchase state and city bonds that pay him 5% annually and are tax free. If the burrito shop does not raise the price of the burrito, then when the investment eventually pays below 5%, some investors will decide not to open a burrito restaurant and will buy government bonds instead, no worries, no risk.

No take home pay for the workers. No taxes for the government.

You can raise the hourly take home pay, but it will raise the price of the burrito. If you raise take home pay to $10.00, that is $2.38 more or almost a %30 increase in take home pay. The price of the burrito goes up $2.38 also, which is only a 12% increase in the price of burritos. Raising hourly wages works well until you reach a price where people buy less burritos. At that point, raising take home pay on each burrito does not increase total take home pay. It eventually leads to less total burritos and less take home pay. Remember, there is a limit on take home pay increases because there is competition, from food choices that have less labor involved, other workers willing to work for less, and from robots.   

Socialism means the government can take the place of the owner/investor. At that point either the government will lower the price of the burrito by the $1.20 or the government will keep the price at $20.00 and have an additional $1.20 to spend.

You don't need to be a rocket scientist to figure out which one the government will choose.

No evil intent, the theory is that the government can do much more for the overall good if they spend the $1.20. We all would hope they don't waste it.