[zaroth]

I think you misunderstand the concept. It's not that we should never tax all that money, but the theory that you can tax it more simply, fairly, and efficiently by taxing those same dollars but only at certain times.

For example, some states tax corporations based on their total assets. And we already charge taxes whenever money moves out of a corporation (sales tax, income tax, capital gains tax).

The point is you shouldn't have to tax dollars on the way in, dollars at rest, AND dollars on the way out just to allocate the common expense.