No. That is not accurate. Income from corporate operations are not tax as capital gains unless the operations happen to be related to investments or interest. Corporations do use loopholes to their advantage to shift income when possible. By definition, returns for shareholders are taxed as capital gains. http://en.wikipedia.org/wiki/Corporate_tax_in_the_United_States#Tax_rates Keep in mind that if capital gains were suddenly taxed at the income tax rate, the entire stock market would collapse. It would create the worst depression the world has ever seen.