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Senators introduce legislation to penalize Facebook co-founder
A pair of Democratic Senators have introduced legislation that would punish anyone who renounces their American citizenship with the intent to avoid taxes. The bill comes shortly after Facebook co-founder Eduardo Saverin allegedly did just that, relocating to Singapore and relinquishing his US citizenship in a move that many feel was done to avoid paying capital gains taxes.
Saverin’s shares in Facebook are expected to be worth nearly $3 billion tomorrow when the social network goes public. As such, he would likely be billed around $100 million in capital gains taxes, hardly a drop in the bucket at that point.
Under the new bill introduced by Sen. Chuck Schumer and Sen. Bob Casey, the IRS will assume that anyone with a net worth of $2 million or a tax liability of $148,000 or more that renounces their citizenship is doing so to avoid the tax burden.
Laws are already in place that prevent such individuals from re-entering the country but Schumer says there have been issues with enforcement. Their legislation would stiffen up re-entry laws and further state that any future investments in the US would be taxed at a 30 percent rate.
For his part, Saverin says that his departure had nothing to do with taxes and that he complied with all known laws. By this, he means paying an exit tax (estimated around 15 percent), a fee that is based on assets the person has when leaving the country.
Some tax experts, however, feel that Saverin’s decision to leave now could have been influenced not by capital gains taxes, but estate and gift taxes. Had he remained a US citizen, he wouldn’t have had to pay capital gains taxes until he sold his shares. But at the time of his death, his heirs would face an estate tax rate of 35 percent or more. Under gift tax laws, a living individual can only give $13,000 per calendar year per person without being taxed.
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Night Hacker said:
Didn't realize their was so many people here that would defend the ridiculously rich 0_oI'm all for capitalism but after a person amasses tens of millions of dollars and above... It becomes absurd. They really weren't that much smarter or hardworking than the next person. Becoming wealthy takes skill/hard work but becoming filthy rich is just luck and at that point it's only right to be taxed 50% and higher to repay society for the opportunity of being so ridiculously fortunate.
Again... Nothing wrong w/ having more money than others if you worked for it but their does reach a point when one can suck too much money from the economy. Most rich people sit on their cash. If you really think it's wrong to tax the ridiculously rich than your probably a bit on the greedy side.
No, I feel it is wrong to tax one citizen more than another merely because they had the good sense to work hard and made the right decisions in life and ended up with more money than you.
If you feel they have been dishonest and broke some laws to get where they are than show some proof and have them charged but last I checked it wasn't a crime to earn money and if you found a way to earn lots, why should you be penalized for it?! There are many wealthy people who donate millions of THEIR money all the time. If I make money, I shouldn't have to pay anymore than anyone else in the same country. If they're paying a percentage of their income they already ARE paying more than you.
I don't understand how you feel you deserve part of anyone else's money, I don't give a shit how much they made.
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You take it soOOoo personally like the poor are personally taking the money and going on spending sprees for new PC's and TV's... I've met plenty of lazy scumbags and quite frankly they are outnumbered by the people who work hard and hold down jobs. Hardworking doesn't necessarily mean smart but that doesn't make them any less valuable to society. Simple fact is the obscenely rich were not really that much of a harder worker or smarter. If anything they had a much deeper obsession w/ money to go out and keep chasing it. The rich who make tens of millions of dollars got lucky. It wouldn't have been possible if it weren't for society being in place. Workers to build those convenient roads. People to be cops and security guards so bandits don't take it away from them. They owe society, not the lazy scumbags... SOCIETY. Not talking about the people who are making 6 figure incomes. I"m talking about the people who are making 8 figure incomes...
Also two things. Small business create the bulk of the jobs in this country so your point is moot there. Second of all, I've read interviews with the plenty of fabulously rich stating "Tax me more, I pay less than my secretary for crying out loud" I've owned my own side business here and there and I can write off EVERYTHING as a business expense lol Your arguments will only work for the greedy and uncaring.
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