Steve's barking I want to make the tax code worse.

For the life of me I can't figure out why some one who has shares in a mutual fund has to pay the taxes on capital gains when stocks are sold for a profit or when dividends are paid out that aren't seen by the share holder of the mutual funds. It seems only fair that taxes shouldn't be paid by the share holders untill the money is actually seen by the share holder.
Then again what do I know about the tax code, after all I' m only a tax payer.