GOP presidential candidate Mitt Romney said "corporations are people," drawing heckling from a crowd at the Iowa State Fair Thursday.

Romney said for the government to meet its future obligations, one way is for it to raise taxes on people. Then a man from the crowd yelled, "corporations," suggesting that taxes be raised on corporations instead.

"Corporations are people, my friend. We can raise taxes - of course they are. Everything corporations earn ultimately goes to the people. Where do you think it goes? Whose pockets? Whose pockets? People's pockets. Human beings my friend," responded Romney.

His comments were immediately met with jeers.

Democrats jumped on the gaffe.

"It is a shocking admission from a candidate -- and a party -- that shamelessly puts forward policies to help large corporations and the wealthiest Americans at the expense of the middle class, seniors, and students," said Democratic National Committee Chairwoman Debbie Wasserman Schultz in a press release.

The "corporations are people" statement comes at the 3:25 minute mark of the video below.