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Facebook's Eduardo Saverin gives up citizenship
Los Angeles Time ^ | May 11, 2012

Posted on 05/11/2012 4:35:31 PM PDT by paudio

Saverin, who was immortalized in the film “The Social Network” as Zuckerberg’s contentious former friend and business partner, has a 4% stake in the company, according to the Who Owns Facebook? website. His stake could be worth nearly $4 billion after the IPO.

“It's definitely savvy tax planning,” said Edward D. Kleinbard, a professor of law at USC who specializes in federal tax policy and international taxation. “He can argue that the value of the Facebook shares in September, when he gave up his citizenship, were significantly less than the value that will be set at the IPO next week.”

(Excerpt) Read more at latimes.com ...


TOPICS: Business/Economy; Extended News; Foreign Affairs; Miscellaneous
KEYWORDS: facebook; renoucecitizenship; saverin; tax
So, tax regime in Singapore is more attractive than in the US?
1 posted on 05/11/2012 4:35:33 PM PDT by paudio
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To: paudio

OWS should have a field day with this. I would submit that my US citizenship is more valuable to me than money.


2 posted on 05/11/2012 4:43:58 PM PDT by Huskrrrr
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To: Huskrrrr

Not to me. I’d vacate faster than you can say “confiscatory tax rates!”


3 posted on 05/11/2012 4:51:33 PM PDT by Cyber Liberty (Obama considers the Third World morally superior to the United States.)
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To: paudio

My cursory search failed to find anything to suggest that Saverin worshiped Obama and his edict that all pay their “fair share.” No doubt he is one them “do as I say, not as I do,” “I am special and you’re not” liberals.


4 posted on 05/11/2012 5:03:20 PM PDT by WilliamofCarmichael (If modern America's Man on Horseback is out there, Get on the damn horse already!)
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To: paudio

Its still going to cost him. The IRS takes a chunk for leaving.


5 posted on 05/11/2012 5:12:36 PM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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To: Huskrrrr
my US citizenship is more valuable to me than money.

Baraq says we're no better than anyone else, and he's working hard to make it that way.

6 posted on 05/11/2012 5:15:42 PM PDT by nascarnation
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To: Huskrrrr

Same here. I’d rather be dirt poor Among Americans than filthy rich among foreigners.


7 posted on 05/11/2012 5:17:30 PM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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To: cripplecreek

he already left before he received the stock, so irs can’t tax him


8 posted on 05/11/2012 5:52:45 PM PDT by 4rcane
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To: paudio

who are the investors in facebook. They’re so stupid. They’re buying a stock at the very top while the owners are cashing out


9 posted on 05/11/2012 5:52:45 PM PDT by 4rcane
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To: cripplecreek

Ha, then you’re pretty stupid imho. You could help America, not by going down with the ship, but by protecting your wealth so that one day you could reinvest your capital back in America.


10 posted on 05/11/2012 5:55:13 PM PDT by 4rcane
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To: 4rcane
Ha, then you’re pretty stupid imho.

Yeah that's me. Stupid enough to be a proud American willing to stand by my country.

And you clowns beat up on Michelle Obama for saying she was ashamed of her country.
11 posted on 05/11/2012 5:58:46 PM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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To: 4rcane

The stock is not traded until their IPO next Friday, the current inside owners cannot sell until after the 6 month lock up period is over.


12 posted on 05/11/2012 6:00:47 PM PDT by PMAS (ABO 2012)
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To: Huskrrrr

IIRC, he was born in Brazil, retains its citizenship, had been dual with US, and now lives in Singapore. This may just be the very reason, tho, that the Founders insisted our POTUS be ‘natural born,’ i.e., someone so ingrained in the USA that he wouldn’t leave for financial gain.

5-10 years ago I wouldn’t have considered giving up my natural born citizenship - the thought never would have occurred. Today I’m not so sure. If O is reelected in November, it might just become downright attractive.


13 posted on 05/11/2012 6:01:10 PM PDT by EDINVA
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To: cripplecreek

Liberals are destroying the country and you want to go down with them. You help America by staying alive with include anyway you can to help preserve your wealth to help rebuild America again. You’re not standing by your country by dying and contributing nothing


14 posted on 05/11/2012 6:07:47 PM PDT by 4rcane
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To: 4rcane

Whatever it takes to convince yourself that you aren’t the coward. Be my guest.


15 posted on 05/11/2012 6:10:40 PM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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To: paudio

taxes in singapore are 10% for everyone. there might even be a cap

so yea... MUCH more attractive.

if the US was trying to attract the job creators (ie: people with investment dollars).. they wouldn’t make it detrimental to invest here.

since they’ve been pushing everything out of the country, why wouldn’t someone either with wealth or with the means to make it... go to another country to do their work?

especially if that business is internet based


16 posted on 05/11/2012 6:11:19 PM PDT by sten (fighting tyranny never goes out of style)
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To: paudio
So, tax regime in Singapore is more attractive than in the US?

Most definitely. Besides, Saverin is a rock star in Singapore. In the US, not so much...

17 posted on 05/11/2012 6:12:37 PM PDT by Mr. Jeeves (CTRL-GALT-DELETE)
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To: paudio

I read an article last week that the rules have become so “Draconian” (that’s the word used) for Americans in foreign banks that overseas banks not only are not accepting American accounts, they are starting to close established ones.

This is just the beginning of a flood, as if the politicians care. Atlas is shrugging.


18 posted on 05/11/2012 6:15:15 PM PDT by I still care (I miss my friends, bagels, and the NYC skyline - but not the taxes. I love the South.)
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To: 4rcane

He has no intention of “building America again” although he does have a clear intention to love his money. He loves his money more than the loves America. When the Chinese take over his new residency, that money will mean less and his lost freedom will mean more.


19 posted on 05/11/2012 6:17:46 PM PDT by SaraJohnson
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To: paudio

Article. Notice how halfway down they talk about sentiment in Singapore, where this guy is.

http://www.thestar.com/business/article/1175497—go-away-american-millionaires-foreign-banks-turn-away-the-rich-as-tax-evasion-law-looms


20 posted on 05/11/2012 6:18:21 PM PDT by I still care (I miss my friends, bagels, and the NYC skyline - but not the taxes. I love the South.)
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To: I still care

This is the dark side of America showing itself again. Mainly because “we” can, and most of “us” aren’t affected.


21 posted on 05/11/2012 6:36:02 PM PDT by MetaThought
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To: 4rcane

There’s some suggestion that Facebook stock will be another Groupon.


22 posted on 05/11/2012 6:36:23 PM PDT by Jack Hydrazine (It's the end of the world as we know it and I feel fine!)
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To: SaraJohnson

Hell I’m dirt poor now. I intend to make the marxists fight for every inch and it will be a whole hell of a lot cheaper for me than it will be for them.


23 posted on 05/11/2012 6:37:12 PM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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To: paudio

Guess why?

The United States of America is the only one of the 200+ nations on this planet to include the following anti-competitive elements in its tax system:
1. Since Japan reduced its corporate income tax rate effective April 1, the USA has the highest corporate income tax rate in the world,
2. The USA has a non-territorial income tax system, meaning that it insists on taxing its corporations and individuals on their world wide income (subject to an individual exclusion of about $80k)
3. With the most complex income tax system in the world (both individual and corporate), our tax compliance costs are enormous. This constitutes a hidden additional tax
4. The US is the only one of 34 OECD nations with no border adjustment element in its tax system. That means we have no means of taxing most imports (since NAFTA and other trade agreements have greatly reduced tariffs over the past decade or two) and no means of relieveing our producers of their tax burden on their exported goods.

The combination of #1 and #2 above is particularly toxic. In tandem, they create the situation in which our corporations pay taxes in the jurisdiction they are earned in, then turn around and pay an additional amount (because our tax rates are ALWAYS higher) to the U. S. government.

All together, it is hard to believe that ours is not the worst tax system on the planet from the standpoint of global competitiveness. That’s right - worse than Namibia, Belize, Bangladesh, Laos, Iceland and any other country you can name. At a time when globalization is THE megatrend shaping the future of the world, and when the global competition for jobs, capital and markets are increasing rapidly, we stand pat with this tax system.

However, there is one thing that our tax system excels at - it is terrific at siphoning money out of the big money special interests and getting it into the hands of lobbyists and the campaign coffers of career politicians.


24 posted on 05/11/2012 6:40:28 PM PDT by Bigun ("The most fearsome words in the English language are I'm from the government and I'm here to help!")
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To: EDINVA

Thanks, I didn’t know that about him.


25 posted on 05/11/2012 7:01:49 PM PDT by Huskrrrr
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To: I still care

At the rate this country is going the Feds in the future won’t permit Americans to travel abroad except with very limited permission slips. Kind like the old Soviet Union!


26 posted on 05/11/2012 7:03:21 PM PDT by Jack Hydrazine (It's the end of the world as we know it and I feel fine!)
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To: cripplecreek

“I intend to make the marxists fight for every inch..”

I’m with you brother (or sister). If Zero tries to crown himself king after the election, we’ll be around.


27 posted on 05/11/2012 7:09:37 PM PDT by Huskrrrr
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To: Huskrrrr
From my FReeper profile page.

I'm a lifelong Michigan redneck. This is where my roots are and this is where I'll die. Don't ask me to leave because I'm too happy to play the role of bleeding hemmoroid on the butt of the liberals of this state. Its the greatest place in the world and I'm not giving it up.
28 posted on 05/11/2012 7:19:22 PM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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To: paudio

I remember when people migrated TO the United States for more Freedom.


29 posted on 05/11/2012 7:48:39 PM PDT by UnwashedPeasant (Don't nuke me, bro)
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To: cripplecreek
"Yeah that's me. Stupid enough to be a proud American willing to stand by my country."

There is the IRS and the Socialist American government on the one hand. And there is America the Country on the other hand. They are not the same thing, and you cannot love both.

30 posted on 05/11/2012 8:04:14 PM PDT by UnwashedPeasant (Don't nuke me, bro)
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To: Cyber Liberty

I can’t blame anyone for trying to avoid taxes any way they can. I do despise liberals who do it.


31 posted on 05/11/2012 8:04:28 PM PDT by Terry Mross ("It happened. And we let it happen." Peter Griffin - FAMILY GUY)
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To: paudio

We can now update the game Where’s Waldo...to There’s Eduardo. And there’s Eduardo’s money!


32 posted on 05/11/2012 8:08:19 PM PDT by combat_boots (The Lion of Judah c<meth. Hallelujah. Gloria Patri, Filio et Spiritui Sancto.)
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To: Bigun
So, economic growth in the US happens despite its tax system.
33 posted on 05/11/2012 8:16:25 PM PDT by paudio (no tagline for now...)
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To: paudio

In a word, YES!


34 posted on 05/11/2012 8:34:20 PM PDT by Bigun ("The most fearsome words in the English language are I'm from the government and I'm here to help!")
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To: cripplecreek

He was born in Brazil.


35 posted on 05/11/2012 8:58:47 PM PDT by SeaHawkFan
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To: paudio

Foreigners have virtually no capital gains tax in the U.S. and Singapore doesn’t tax income earned abroad (like every nation on Earth except the U.S.)


36 posted on 05/12/2012 2:12:35 AM PDT by bjorn14 (Woe to those who call good evil and evil good. Isaiah 5:20)
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To: cripplecreek

If he renounced over a year ago and filed the paperwork with the IRS he probably won’t pay a dime.


37 posted on 05/12/2012 2:15:19 AM PDT by bjorn14 (Woe to those who call good evil and evil good. Isaiah 5:20)
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To: sten
taxes in singapore are 10% for everyone. there might even be a cap

No they're not.

Singapore has a graduated rates starting at 2% and topping out at 20%. They have 8 different rates based income level. There is no cap.

The bigger advantage for Saverin is they have no taxes on capital gains or overseas income.

38 posted on 05/19/2012 4:30:19 PM PDT by Doe Eyes
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