There are other "separate legal entities" like partnerships and S-corps that don't get double taxed. Only corporations have this double taxation. That's why it's unfair.
The philosophy here is that you shouldn't get taxed on dividends because you're an owner... the money was already yours. The plumber didn't have to pay tax again to take his money out of his plumbing business (maybe a limited-liability partnership) and buy DVDs, but the shareholder did.
The philosophy here is that you shouldn't get taxed on dividends because you're an owner... the money was already yours. The plumber didn't have to pay tax again to take his money out of his plumbing business (maybe a limited-liability partnership) and buy DVDs, but the shareholder did.