Obama is using another strawman ploy. Anyone in business understands the role of C corps, S corps, LLCs, Partnerships and Schedule C business entities. The average voter would not. The only entity in the aforementioned list that pays Corporate Income taxes is the C Corp. That DOES NOT mean that profits from the other entities are tax-free. All of the others are what is known as pass-through organizations, meaning that the profits are passed-through to individual shareholders or partners and those individuals pay the taxes. There are many reasons why this is so but the bottom line is that taxes are paid.