And if at "D" it is a small local bank - a private limited corporation with lets say 50 shareholders? What if at "D" you have your friendly Ben&Jerry ice-cream company and not the "evul 1% fat cat with a monocle and a top hat"?

You created a business and asked a bunch of your friends to get into business with you. They don't have to be employed at this corporation but they own it just as much as you do. Or maybe they do work at it. Would you like to be taxed twice?