As Food Stamp Recipients Hit New Record, 400 Americans Account For 10% Of Capital Gains

Tyler Durden's picture

Today SNAP released the most recent food stamp numbers. Not surprisingly, we just saw another all time high 44.2 million poverty-level Americans relying on government funding for day to day sustenance. Granted the number appears to be plateauing, so all those who bought the change if not the ho[y]pe, can rejoice as it may start declining next month: a development that is sure to be herald for Obama a 4th Putin-esque term. That said, another number that has to be kept in perspective and for which we have to thank none other than Pauly-K is that offsetting these 44.2 million of impoverished Americans who can get a tax refund for writing off the American dream, are 400 Americans who accounted for 10%, or $91 billion of total, in capital gains taxes, or said otherwise, 400 US taxpayers account for 10% of all capital gains in 2007! We are currently going through old issues of Pravda to see if the Communist empire ever achieved this kind of social disparity between the nomenklatura and the proletariat (it didn't). If we find confirmation we will post it, and lose a sizable bet which will certainly deny us any possibility of every being among the abovementioned 400.

First, the latest SNAP:

And second, at a factor of 110,500 to 1, here are the 400 people who not only account for 10% of all US capital gains taxes (Taleb was right), but end up paying a whopping (sarcasm inluded) 17% in taxes on it.

One of the more interesting documents published by the IRS is its report on the income and taxes of the top 400 taxpayers (pdf). A lot of attention gets focused, rightly, on the remarkably low average tax rate these people pay — less than 17 percent in 2007, the lowest on record. But I was struck by something else: in several years during the last decade the top 400 accounted for more than 10 percent of all capital gains income in America. Just 400 people!

Visually, this is presented below: of the $907 billion in capital gains paid in 2007, only 400 taxpayers accounted for $91 billion:

That's right ladies and gents, 400 US citizens are the primary beneficiaries of the Weimar rally so insiduously orchestrated by Chairsatan Benzebub. Or, in other words, 44.2 million to 400. And now you know that "democracy" can withstand even odds worse than 100k to 1.

h/t JLohman and MM

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Ahmeexnal's picture

"4 more years! 4 more years!"

Missiondweller's picture

Yes we can.........make you dependent on food stamps!

Michael's picture

Barack Hussein Obama is the second coming of Christ.

Obama is God!

All hail the second coming of the Christ child.

God dwells in Obama.

BO is God!

How may people are losing unemployment benefits this year?

Michael's picture

What are the American sheeple going to think when they are informed they have been played by their government on this whole Bin Laden situation?

Michael's picture
Al Jazeera English: Live Stream Al Jazeera English: Live Stream Al Jazeera English: Live Stream

Michael's picture

I just thank God the pain and suffering the American sheeple are going to go through in the complete and total economic collapse of their country, is going to be immense. They deserve to experience the greatest depression that will make the great depression look like a picnic. America has become the idiocracy only an elitist master supreme could have imagined.

downwiththebanks's picture

What a sick fucking human being you are.  It's hardly the fault of the 'American' people that Capitalism has failed to provide for the public's needs on a GLOBAL scale.

Yet you blame the victims rather than the system:

Have you given any thought to killing yourself?  

Holodomor2012's picture

Nope.  I have to agree with the Michael and Dr. Pierce here. 

My God! If there ever was a country asking to be struck dead by lightning, it's America today.

 (Quote at 4:23 @

Rynak's picture

Oh, what a hypocritical apologist you are..... when you are cheated once behind your back, you can claim that you couldn't do anything about it. When you are cheated a few tenthousand times for dozens of years, and DEFEND those people, AND ridicule the few who are trying to inform what is going on AND actually positively DEMAND that this shit continues (do you have any idea with how many americans i have talked who SUPPORTED much of the shit, including the disgusting idea, that it is okay for the FED to rob the world, BECAUSE WE CAN (we are the reserve currency, so we can))...... when all this applies, then you fucking deserve to fall on your face really hard.... you earned it!

Harlequin001's picture

Well I would have said the same thing bit would not wish to be labelled as anti American in doing so. I am not anti American, but it is hard to see how you can will fully ignore this and yet claim to be innocent. Same for anyone else who stood by and said/did nothing or sat back and acted like the world owed them a living...


HoofHearted's picture

Where have we seen capitalism? This is nothing but Keynesian transfer of wealth. Without the perverse incentives that inflation and the fairy tale that growth can always increase, we don't have the problem. The victims are exactly the ones voting for this garbage.

Chuck Walla's picture

What Capitalism? This over-regulated, over-taxed behemoth?  The one where government provides the livings of 20%(now more than ever) of its citizens?  You mean THAT Capitalism?  Go back to your school and get a refund, they taught you nothing.


Americans lost the Dream because they were lied to and accepted that. They were guilt tripped without debate. They were victims of the same educational system you obviously were.


Because of the  lack of our diligence, we should be called the SLEEPLE!

Orly's picture

Excellent points, Chuck.

The masses have been dumbed-down and stepped on...on purpose.  Thieves- one and all.

Oh, but we're waking up now, believe.'s picture

No, the "over-regulated" capitalism of Wall Street cluster fck. The over-regulated Capitalism of Glass-Steagall Act repeal, sponsored by the Wall Street. THAT Capitalism. Go jump off a roof somewhere, you MORON!

CH1's picture

Guys: These two live (are probably paid) to be time-wasters.

akak's picture

Por que no "Si podemos"?

Eso seria mas cerca de la frase inglesa "Yes we can", verdad?

Cash_is_Trash's picture

Pero ya esta chingado el pais.

The country is already fucked.

MarketTruth's picture

As the Anointed One says:

"Chains you can bereave in."

vxpatel's picture

i've read your other posts...and am a bit surprised your into partisan politics...

Ahmeexnal's picture

I am not. Forgot to /sarc that comment.

Whomever gets elected, it will be 4 more years of the same.

Oh regional Indian's picture

4 years

More years

Could have been

Gore years

4 years Agore, if someone had said that two hands are better in the Bush, I would of said oh Mama. But it's been 8. And it's getting late.

Lock the gate.

After you!


vxpatel's picture

glad to hear it...just day the sheeple will realize changing the politician doesn't change the system,it simply changes the politician....



anynonmous's picture

The need to /sarc a comment reveals a great deal about the reader.'s picture

Yes, I agree. There will be years of what Wall Street wants us to do. They have completely hi-jacked the government.

AnAnonymous's picture

One half of the issue is reported for the year 2007. So before Obama took office.

downwiththebanks's picture

While I'm not a fan, it's hardly the puppet-in-chief's fault that the banker-gangsters who put him in power have ratfucked the economy.

A failed economic system is the cause of this sick, sick phenomenon.

Time for something different.

Orly's picture

Like he's not part and parcel to the whole kit and kaboodle?

Wake up, man!

MilleniumJane's picture

Need to stop making excuses for the man.  The banksters bankrolled his campaign and he has been their lapdog ever since.  Three years now and still no fundamental changes to this plutocracy.  'Nuff said.

tickhound's picture

Clearly the food stamp bubble is rolling over.  I'll wait for the inevitable correction before I start scoopin'.

Nuthin' goes up in a straight line, but once the Chinese start sellin' US paper... this charts goin' to the moon! 

Free food bitchez!

redpill's picture

When does ProShares release its Ultrashort Foodstamps ETF?

tickhound's picture

Hell ya!  Then go long with leverage on top of leverage... best to get back in and ride the wave before the rate hikes come.

Saxxon's picture

LOL redpill; yes there must be a secondary market to exploit here somewhere; around 25 million Mexicans do it every day...

caconhma's picture

"Free food bitchez!" ?

No, it will be rather a famine, a starvation, and a revolution.


Farmers will not feed fucking Obama parasites for free.

Finally, the comrade Lenin said that "intellectuals are POS that has to be flushed". I like this brand of socialism.

Ahmeexnal's picture

Some heads are gonna roll.

400 heads to be precise.

goldfish1's picture

"HOLODOMOR"  is Ukrainian word for  "FAMINE-GENOCIDE"

Holodomor2012's picture

Did someone call for a marxist engineered famine?

Green Leader's picture

This time around is a bio-geo-engineered famine.

Chemtrails spiked with bio-agents and geoengineering have been damaging crops--starting with my plantain plants. They're gone.

There is a rampant cassava virus in Africa which attacks varieties developed for high yields. I was given some Colombian CM-3311 high yielding cassava twigs and they never took off, as the leaves just looked like the ones infected in Africa.

Right now USA's military is drying up the Caribbean and Central America, extracting moisture with chemtrails spraying and using scalar/microwave energy antennas to dump it in the mid Atlantic, where rain is induced via artificial cyclones. Anyone can see that in the NOAA Water Vapor Loop Satellite imaging:

Famine is coming soon.

In the meantime, Russia and China are watching closely.



tickhound's picture

relax Einstein, its a joke.

Chuck Walla's picture

Of course, Lenin was an intellectual. He knew of what he spoke and Trotsky agreed, to his detriment.

Orly's picture

The Holodomor was perpetuated by Stalin, not Lenin.'s picture

Farmers are subsidized by the same govimint.

Phaderus's picture

Sorry, but the government is creating this poverty not the rich, try again.

jeff montanye's picture

oh stop it.  they work as a team.

and p.s. the richest 400 work very hard (actually their minions do) to avoid paying capital gains tax, that is why appreciated assets have their purchase price changed to date of death value when passed on.  there are many, many other dodges available to the wealthy that the rest never know about or use (they own mutual funds which distribute capital gains without the retail holder even selling).

the story is wrong:  10% capital gains taxes paid does not imply 10% capital gains.  the actual figure is far, far higher.  it pays the rich to minimize taxes.  the little people not so much.

Urban Redneck's picture

It is not the richest 400, it is the 400 with the highest incomes, there is a huge difference. 

Also, the average annual capital gains which receive preferred tax treatment exceeds total average annual capital gains- e.g. look at IPO's and LBO's as the source of capital gains (and the sample size is only 400).  Managed money (Hedge, LLC, LLP, etc) is going to show on a pass-through entity (p4 of the IRS document).

Krugman's usual brain fart in his piece occurred when he tried to make the leap that the argument that capital gains tax reductions helping small business people is bogus because the top 400 receive an out sized benefit.  This will happen in ANY non-graduated tax.  The simple solution is tier the capital gains tax structure, not punish a huge number of small business people in order to get to a subset of 400.  As usual, his writing attempts allegation by insinuation, instead of completing the argument and opening himself to direct refutation.

Old Poor Richard's picture

Thanks for some real analysis.

The two obvious answers are to quit treating different forms of income differently, and to get rid of cost basis resets. 

We need a FLAT TAX that treats all forms of income the same, including inheritances.  If it's 'new to you' you pay the same tax rate on it whatever the source.