Corporate profits have to be taxed, either the tax is paid by shareholders (annual pass through like S) or by the corporation (C corporation). Just doing it on

Corporate profits have to be taxed, either the tax is paid by shareholders (annual pass through like S) or by the corporation (C corporation). Just doing it on cap gains doesn't work because there is no tax unless the asset is sold, and the asset doesn't even have to be sold, it can be borrowed against cheaply and make even more money that isn't taxed at the same rate as earned income. There's a reason why it's stupid and complicated, it's a political and economic compromise. Compromise is exactly why it's ugly. There is no possible meritocracy here. It won't ever happen, it's politically untenable. Also, corporations have fought to be recognized as persons when it comes to political free speech, so tough noogies they can pay tax like a person too.