[Taxation]Historically, taxpayers have implemented strategies to mitigate or eliminate the effects of double taxation. Why might taxpayers think twice before implementing such strategies today? Explain.

The nondeductibility of the distribution by the corporation, coupled with the taxation of the distribution to the shareholder, creates double taxation of the corporations income, first at the corporate level and then at the shareholder level. The double taxation of distributed corporate income has been a principle of the U.S. income tax.