Here's an example of overtax, which is quite common:
A developer pays taxes for the supplies needed to build a home, pays a tax for the purchase of the property (land), pays a business tax, and a few licenses and permits. The house is built and is put up for market. It is sold, and the person's purchasing it have to pay a tax. The developer has to pay a tax on the income received for the sale. The new owners have to pay an annual tax on the property, despite owning it. When they resell the house, they have to pay taxes on the income received. The next owner has to pay a tax on the purchase and must pay a property tax annually for a home they own.
With all the taxes, licenses and permits, the government makes $1,200,000 in 20 years on a piece of property that retails for $200,000.
Here's another example:
A farmer pays taxes on the cows in his farm. He then pays a tax for selling his cow. As well, he has to have a license to have a farm. The person who owns the cow, butchers and skins it, and of course he has to have a permit to do so. He then sells the meat and the skin, paying taxes on each. The person who takes the skin, makes a leather coat out of it. He pays for business/manufacturers licenses. He then pays taxes when he sells the coat (income tax). The person who purchases the coat has to pay a tax to purchase it (sale tax). If the person decides to resell the coat, he must pay a tax (income tax) and the purchaser must pay a tax (sales tax). It is sold 5 times, each time both parties end up paying taxes on the transaction.
All in all, the government makes a whopping $600 on taxes, permits, and licenses on a coat that initially sold for $200. And while the coat depreciates in value with every resell, the government continues to get a cut.