The step up in basis for capital gains at death provides an end run that can turn deferral of shareholder level taxation by not selling stock and having corporations not pay dividends into tax avoidance rather than mere tax deferral. (politics.stackexchange.com)
Traditional C - corporation status provides the protection of limited liability for shareholders, but at a cost of double taxation of earnings — at both the corporate and shareholder levels. (inc.com)
It's generally better to tax corporate earnings at the shareholder level, where you can be taxed based on ability to pay, than at the entity - level, where it's less clear who's ultimately paying the bill (vox.com)