Posted on 05/17/2012 12:26:38 PM PDT by Theoria
Facebook co-founder Eduardo Saverin, who renounced his U.S. citizenship, is now facing backlash from politicians: Two U.S. senators are proposing a plan that would prevent people like Saverin from reentering the country.
As we reported yesterday, by some estimates Saverin may save $67 million in taxes by giving up his citizenship.
"We simply cannot allow the ultra-wealthy to write their own rules," Sen. Bob Casey, the Democrat from Pennsylvania said in a statement. "Mr. Saverin has benefited greatly from being a citizen of the United States but he has chosen to cast it aside and leave U.S. taxpayers with the bill. Renouncing citizenship to simply avoid paying your fair share is an insult to middle class Americans and we will not accept it."
Casey and Sen. Charles Schumer, a Democrat from New York, said their plan — which they've called the Ex-PATRIOT Act — would re-impose taxes on expatriates and they would not be allowed to reenter the country until they settled their tax bill.
Through his spokesman, Saverin has said he didn't give up his citizenship for tax purposes. Tom Goodman, his spokesman, told The Wall Street Journal, Saverin renounced his U.S. citizenship because of the investment restrictions placed on Americans.
"U.S. citizens are severely restricted as to what they can invest in and where they can maintain accounts," Goodman told the Journal. "Many foreign funds and banks won't accept Americans. This was a financial rather than a tax motive."
That statement didn't stop Schumer from issuing some scathing words.
"Mr. Saverin has decided to 'defriend' the United States of America just to avoid paying his taxes," Schumer said in a statement. "We aren't going to let him get away with it so easily. It's infuriating to see someone sell out the country that welcomed him and kept him safe, educated him and helped him become a billionaire."
From the Casey's press release, here's a bit more detail on their plan:
"Under the proposal, any expatriate with either a net worth of $2 million or an average income tax liability of at least $148,000 over the last five years will be presumed to have renounced their citizenship for tax avoidance purposes. The individual will then have an opportunity to demonstrate otherwise to the IRS by meeting specific IRS requirements. If the individual has a legitimate reason for renouncing his or her citizenship, no penalties will apply. But if the IRS finds that an individual gave up their passport for substantial tax purposes, then it will prospectively impose a tax on the individual's future investment gains, no matter where he or she resides. This would eliminate any tax benefit and financial incentive from renouncing one's citizenship. The rate of this capital gains tax will be 30 percent, in keeping with the rate that is already applied on non-resident aliens for dividends and interest earnings."
What are they going to do? Sig ICE on them if they come back in? ROTFL!!!
Senators Propose Barring Those Who Drop Citizenship From Reentering U.S.
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Great News. And when does Obastard leave the Country again for another Apology Tour/Vacation??
this has zero chance of passing.
I have heard that before. Nothing surprises me anymore.
He's been the dumbest male member of the U.S. Senate ever since Joe Biden got promoted to vice-president.
Did someone bother to tell him that as a non-citizen, he’s no longer able to contribute to campaigns?
So senators Bob and Chucky, when are you going to ban aliens like Obama from the presidency?
“Mr. Saverin has benefited greatly from being a citizen of the United States but he has chosen to cast it aside and leave U.S. taxpayers with the bill. “
The bill for what, you dope? It’s his money. I see a few more Senator dictators are at it again.
Congressmen and Senators don't like competition.
"It's infuriating to see someone sell out the country that welcomed him and kept him safe, educated him and helped him become a billionaire," Schmuckie O Putz.
Pot meet kettle. The 'Rat party is the party of hypocrisy. Invest in guillotines.
Works for me. If they aren’t willing to stand and fight, they may as well stay out.
HA !
Come in through Mexico and you get everything for FREE !!!!
Next they will build a wall to keep the inmates from escaping to more freedom loving countries.
....or staying in the country being that his student visa expired 35 years ago.
....or staying in the country being that his student visa expired 35 years ago.
So now we’re banning people from leaving? What types of regimes usually do that?
I think we’re past the point of no return.
Words fail me.
I mean, I am jingoistic sort, but this sort of vindictive crud would never occur to me.
We really, really to get rid of Schumer and Casey.
The US government believes it has the right to demand banking information from banks anywhere in the world. It further believes it has the right to demand details of your finances no matter where you live and no matter where you earn your money.
The notions of privacy, when it comes to your private earnings, assets, and investments, doesn't exist when you're an American citizen. If you have an account anywhere and you don't tell them, you may be committing a felony.
The Saudis don't cooperate with the US banking authorities, though, last I knew. I noticed that the US goes after banking privacy everywhere in the world except Saudi Arabia.
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