Then the profits are distributed one of two ways.
1. As dividends to stockholders.
2. As reinvestment in the company, which eventually shows up as a capital gain when the shareholder sells the stock.
Taxing it again as income to the stockholder leads to a disastrously high total tax rate, so it's taxed at a "lower" rate than ordinary income.
This "lower" rate plus the corporate rate is still too high, but it's now being sold as a loophole.
It wasn't a loophole. There was a reason for it.