That would be double-taxing capital gains, since individuals are already taxed on it, and would de-incentivize companies from giving corporate income to workers while incentivizing companies to hoard economic wealth.  You want companies to <i>spend</i> money, not keep it.<p>Most limited liability organizations also don&#x27;t have equity, which creates another loophole in your system.  Now you&#x27;re starting to get into why corporate income tax is complex.