[throwaway190102]

I don't think that's quite how that works.

But your point on double-taxation is certainly valid in some contexts.

[shimms]

Some jurisdictions (Australia) have input credits that offset tax already paid on dividends. If a company has paid 30% tax on a profit and distributes dividends to shareholders, the individual pays tax on it at their marginal tax rate less the tax already paid by the company (fully franked dividend).

Franking credits minimise the double taxation issue in these instances.

[AlexTWithBeard]

Will never happen in the US: too reasonable.

[pathseeker]

It is exactly how it works. Apple has been taxed on the profits that make up their giant cash balance. Once that is paid out to investors through dividends or to employees through payrolls, it will get taxed again.

[throwaway190102]

You're right about dividends, but payroll comes out before profit calculations.