Because companies can't deduct the dividend payment on their taxes. If $100 is paid in dividends then both the individual and the company pay income taxes on that same $100.
If I use $100 to pay for groceries, I had to pay income tax, sales tax, then the company has to pay any profits on it, and then when the employee gets paid they have to pay income tax on their part.
Perhaps the issue is we tax money way too much as it flows through our economy.
Perhaps the issue is we tax money way too much as it flows through our economy.