Romney Doesn't Understand The Tax Code

Last night on 60 Minutes Romney said his tax rate was fair because the income was taxed at the corporate level.  While he was correct that any dividend income had been taxed at the corporate level, he was incorrect when he stated that capital gains had been taxed at the corporate level.

I detest double taxation.  Therefore, I believe that dividends should be tax free as the income used to pay them is after tax income from the corporation.  Interest payments are tax deductible so it is appropriate for the receiver of interest to pay tax on it.  And any capital gain or losses at the corporate level would be taxed and paid to investors as dividends.  But capital gains for investors are made by buying a security at one price and selling it for another price.  There is no taxation on those values because they occur from market valuation of corporate activity.  Romney is obfuscating the truth when he advocates that capital gains have already been taxed at the corporate level.  They have not!

Corporations pay no taxes on the capital gains and losses generated by their securities.