[memling]

Dividends are taxed twice: once as profit to the company issuing the dividend and once when the recipient receives it.

[venusenvy47]

Isn't this the normal cycle of money? Continuing the example, the recipient spends some of this dividend money at Starbucks and pays sales tax. Then Starbucks pays income tax on the money and the cycle repeats.

[s1artibartfast]

Yes, money keeps being taxed but the number of tax events changes depending on the path the money travels. It can have more or fewer taxable events.