Double taxation

When you buy something at the store, you pay taxes on it. That's how the government gets money to pay for things like schools and roads. But when a company makes money, they also have to pay taxes on that money. That's called corporate tax. Double taxation happens when the company pays tax on their money and then the shareholders who own the company also have to pay tax on the money they get from the company - like if the company gives them a dividend. It's called "double" because the money gets taxed twice! It's like if you wanted to buy a toy with the money your mommy gave you, but you went to the store and they made you pay tax on the money first - then you don't have enough to buy the toy you wanted. Double taxation can make it harder for companies to make money and for people to invest in those companies. That's why some people think we should change the tax laws to make it fairer.