Facebook’s Eduardo Saverin is Not Your Slave, Democrats!
For renouncing his U.S. Citizenship to allegedly avoid paying punitive capital gains tax, Facebook co-founder Eduardo Saverin angered
two Democrat senators who seek to introduce a plan that would bar people who evade paying taxes from reentering the U.S.
Sens. Chuck Schumer, D-N.Y., and Bob Casey, D-Pa., were determined to propose a comprehensive plan to target individuals who renounce their U.S. citizenship in attempts to avoid taxation on profits expected to be made on public companies.
Saverin, who reportedly maintains a net worth of more than $2 billion from his 4% Facebook shares, abandoned his citizenship in September last year. This caused many to speculate he did so to avoid paying as much as $67 million taxes on the profits he is expected to make once the social-networking giant goes public. Since 2009, the Facebook co-founder has lived in Singapore, which has does not levy capital gains tax.
Here’s a report from CBSlocal.com:
“The senators will call Saverin’s move an outrage and describe a plan to re-impose taxes on expatriates like Saverin even after they flee the United States and take up residence in a foreign country,” according to a release obtained by Talking Points Memo. “Their plan would also bar individuals like Saverin from reentering the country.”
Saverin’s spokesman, Tom Goodman, has refuted the claim that the taxation was the catalyst behind Saverin’s renouncement of his U.S. citizenship, telling Bloomberg that “the calculations and assumptions are not only erroneous, they also further perpetuate the false impression that tax was the reason behind Eduardo’s decision.”
Is the democrat senators’ move to penalize Saverin for renouncing his citizenship ahead of Facebook IPO justified? Instead of blaming their statist, punitive tax policies, these leftist senators blamed a highly successful man for showing what’s wrong with America today. Of course, we don’t expert the hardcore liberals and leftist to understand the great lesson behind Saverin’s decision. It’s all about greed, they say. Of course, it’s all about self-interest.
I found the following comment from a netizen ‘Formerly Proud American’. I believe it’s worth-sharing:
I’m an American who has lived overseas, on several continents, for much of my life and am amazed at how so many people seem not to understand the issues. Facebook makes plenty money outside the USA, too, but is being taxed by the USA. Is that fair? Saverin isn’t a tax cheat; he has already paid (hundreds? of) millions in personal tax payments to the US government. His exit tax was based on profits he hasn’t even made yet. He is also liable for tax assesments for a decade AFTER he isn’t even a citizen anymore. No other developed country with even a semblance of legislative fairness does anything like what the USA does.
US tax law is pretty much unique in the world in it’s discouraging global entrepreneurship. It severely taxes US citizens overseas, including those who were born overseas who have never even set foot in the USA. Under current IRS regulations, Americans living overseas with little or no income are ALL treated as criminals and face severe taxation rules. This is causing a rising stampede by good and fair-minded people to renounce their US citizenship. Last year, more Americans overseas chose to give up US citizenship than in the previous three years combined! It looks like this year it might even rise ten-fold! Most of these 7,000,000+ American taxpayers living or stationed overseas have no reperesentation in the US government. Does “taxation without representation” mean anything to Washington?
In the global economy, most people who understand that the world is more than just LA and NYC feel that the USA has finally lost it’s marbles completely. Saverin understands much better than most of the US government that the future lies elsewhere, especially in Asia. That’s why he’s there. The crazed tax-and-spend policies of the party in power mark the death-throes of a frustrated giant in it’s final fall. Schumer and Casey, both Democrats, are banging more nails into America’s coffin. Trying to prevent people from leaving or from re-entering makes the USA look much more like North Korea, Cuba, the ex-USSR and Syria than the democracy that Washington, Franklin and Jefferson intended. Is it any wonder that decent people want to leave now, before the Iron Doors are shut?
I have been a proud American citizen for decades but now I’m ashamed of my country and tired of explaining it’s ridiculous policies to foreigners. Seeing the USA collapse doesn’t give me any joy. The proposals of Schumer and Casey are wrong and simply indefensible.
I strongly agree!