Senators introduce legislation to penalize Facebook co-founder

[Shawn Knight]

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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https://www.techspot.com/news/48639-senators-introduce-legislation-to-penalize-facebook-co-founder.html

 

[Guest]

I would just like to say a few things.

1. I, A US citizen cant think of a country that I would rather live in. Although Singapore is much nicer for business and other tax purposes, has its own mess of problems (including government control over many aspects of regular life).

2. I cant blame him though. The American society has turned against the rich. The people no longer want to work, create, invent, and innovate anything any more to become "the rich". All the masses want it is to destroy the rich.

 

[TomSEA]

This story would have a lot more validity to it if we knew what the tax rate of Singapore citizens are.

 

[LNCPapa]

I believe it's 20% - but not completely sure about that.

 

[Darkshadoe]

Half these senators don't pay their own taxes, why should they worry that Saverin pay his?

 

[Darkshadoe]

"The American society has turned against the rich. The people no longer want to work, create, invent, and innovate anything any more to become "the rich""

I think you mean that People no longer want to work, create, invent, and innovate anything anymore to make OTHERS rich.

 

[Guest]

Exactly, and leave it to two enterprising Democrats to introduce yet more useless legislation with the intent to punish others and increase governmental control. That loss of money in capital gains tax (Which should be eliminated or at least reduced anyway) would have gone to what exactly? More ineffective and/or corrupt agencies?

 

[RunningMerchant]

"The American society has turned against the rich. The people no longer want to work, create, invent, and innovate anything any more to become "the rich""

I think you mean that People no longer want to work, create, invent, and innovate anything anymore to make OTHERS rich.

Hey, you do know that that is how the economy works right? You work and spend your money somewhere, making someone else wealthier. The only exception seems to be perpetual welfare recipients and politicians who just take your money.

 

[Wagan8r]

It's sad how "progressives" love to penalize those who actually progress in their respective fields. Doesn't Saverin typify what the American Dream is? Immigrating to this country, becoming a citizen, applying himself, and becoming rich and successful?

No, no! Tax his a$$, cause he isn't paying his "fair share"!

 

[Darkshadoe]

Hey, you do know that that is how the economy works right? You work and spend your money somewhere, making someone else wealthier. The only exception seems to be perpetual welfare recipients and politicians who just take your money.

Read deeper into my statement. Corporations do everything in their power to, for the lack of a better word, screw their employees. Cutting wages, insurance, and other benefits yet posting that they had record setting profits. Even the government is getting into the action with trying to break up unions. Then the rich complain they have to pay taxes and support welfare recipients? Guess what..if these corporations and businesses had treated those people with a little dignity and paid them a fair wage when they were employees, they might not be on welfare now. (yes I know there are those that abuse the privilege). Who wants to work for a company they know is going to screw them over just to save a dollar?

You want to know why the U.S. is in the toilet...GREED. Plain and simple greed.

 

[Guest]

Ha, it was Congress that mad this BS legal in the first place:
I wanted to ask Newt Gingrich about all the 1990's hidden legislation such as the “Expatriate Clause” in Clinton’s Family Leave bill. It allowed the super rich (multinational Corporations, Saudi royals, drug trafficers, etc) take their billions out of the country PENALTY FREE!

Newt Gingrich oversaw legislation/policy that paved the way for loss of American jobs, off-shore tax evasion, media consolidation, predatory lending and a “Corporate Crime Wave” of EPIC proportions

While Republicans were waving the American flag and professing love of the USA, behind the scenes they were busy selling out our children’s future. Explain to me please Newt, what good can come from the US Congress insuring the venture capital of Corporations that move American jobs to Communist China? Why should Americans TRUST Gingrich or ANY Republican ever again. I am somebody who knows

QUOTE OF THE DAY
“…Even with all the evidence, Americans haven’t woke up to the fact that Republicans voters are f***’n insane, becoming a danger to themselves and society . The best thing that could happen for the USA is to whack all those million/billionaires who’ve been turning the Republican Party into a bunch of high priced prostitutes. Occupy Wall St failed because they didn’t have the ciones to storm Wall St, K-St and the FOX News building, drag it’s occupants out to the street and punish the vain, greed stricken, power mad *****’s for their crimes against humanity. Managia la America…” Charlie Stunats

Removed link to blogspam.

 

[Raswan]

<p>This story would have a lot more validity to it if we knew what the tax rate of Singapore citizens are.</p>

Aside from this comment, this thread holds nothing of value. Sometimes, I'm flabbergasted by the surety with which the uninformed mouth the (mostly empty, naive, superficial) opinions they get spoon-fed to them by their parents, their favorite news channel, and their equally clueless friends. You guys are polluting the internet, and that's saying something.

 

[gwailo247]

You know another thing that a US citizenship buys you? Navy SEALS that will rescue your *** when you're kidnapped by pirates or other such ne'er-do-wells. I hardly see Brazil dispatching an aircraft carrier to the South China Sea to rescue this guy should his extremely affluent butt gets kidnapped.

 

[Guest]

"All the masses want to do is destroy the rich"

REALLY. In the past 30 years, jobs are fleeing the country-even though taxes are lower than they have been in decades. In the past 30 years, the rich got to take most of their money in capital gains taxed at 15 percent, while the average American sees taxes of 18 percent (nominal rate for wages) PLUS another 7 percent plus for Social Security/Medicare/Medicaid taxes (hence someone like Mitt Romney pays roughly 15 percent-while at 65K a year WORKERS pay over 25 percent). In the past 30 years, we have seen our manufacturing base destroyed, middle incomes are stagnant (no matter how hard you work), health care costs are through the roof....and we KEEP ON giving tax breaks to the rich.

Since 1980, over 90 percent of ALL economic growth went to the top 1 percent. Since 2009, that number has increased to NINETY-THREE PERCENT going to the top 1 percent.

All they want to do is destroy the rich? No-all they WANT is a fair system. Your post is offensive to EVERY SINGLE working class American who goes in, does there job, works hard and can't even get raises that keep pace with inflation. And given the past 30 years-I would say that IF there is a class war-it was STARTED 30 years ago BY THE WEATHY. If "tax breaks" for the "rich" and for business are SOOOO wonderful-then given that we've done it for 30 years, where are ALL those wonderful JOBS, and all that WEALTH they were supposed to create.

And "boo hoo" if I have enough money to have an estate worth MILLIONS then I have to pay estate taxes-and I can only give away 13K a year...well POOR YOU. My heart just bleeds...

 

[Guest]

Yes yes, the American Dream is to come to America, becomes successful, accumulate wealth, and avoid paying taxes by legally fleeing to another country that's well-known as one of the great money laundering capitals of the world.

Because "beating the system" and "fighting the 'government'" trumps giving back to the country that made you successful, or paving roads, or funding schools, or investing in your country's future.

Because it's so unfair that people are trying to "slam a tax" on me after I deftly wormed my way out of having to pay an existing tax.

Because after making $30 I can't be damned to spend a dollar on a poor orphan.

Because I can't sleep at night if I'm only worth 2.9 billion USD and not an even 3 billion USD.

Because that money is mine and no one can lay their fingers on my precious. How DARE you punish me for skipping out on rent. How DARE you call me out on dodging tax laws.

Yes yes, that is the "American Dream."

 

[Guest]

"[FONT=Helvetica]I think you mean that People no longer want to work, create, invent, and innovate anything anymore to make OTHERS rich."[/FONT]

[FONT=Helvetica]Nice future low income country you are building, be happy there.[/FONT]

 

[Guest]

The fact is, the US is the only western country that taxes its citizens living abroad, without allowing them to deduct the tax they have to pay to the country in which they're living. For this reason, many native-born Americans are choosing to renounce their citizenship when they otherwise would keep it. Most people simply can't afford to pay double income taxes. Even if they could, it's still fundamentally unfair. Maybe those 2 senator should spend their efforts in correcting this unfairness rather than writing an extreme law inspired by one man in one unique situation.

 

[Guest]

This is right out of Atlas Shrugged.

Oh well. Who is John Galt?

 

[Guest]

When you say there is no other country you'd rather live in, my guess is that you have never traveled and have no idea what it's like to live anywhere else.

 

[Guest]

great point my friend. great point

 

[Guest]

what about all this companies that relocate their headquaters in order to avoid paying there fair share, what about all this companies that park their billions of shore to avoid paying taxes here where they make and take billions and billions some where else to avoid taxes???????

 

[Guest]

You know that system that all that money was created from the INTERNET. Oh yah, another one of those government INVESTMENTS that others didn't have to invest in the infrastructure ti build, yet benefit from as if it was a insignificant occurrence. . If we were applying strict business metrics to what one(a company) would have to paid the government(the investor) for willing to bear the risk back in the 70's and 80's in such a unproven and wildly speculative enterprise as something called, the net, the government would take home something like 60% of all revenue generated from it. I only hope the RICH expatriate never needs SEAL TEAM 6 (the government) to pull his butt out of the fire in a foreign country by those only live to die so long as their doing harm to a westerner. Another one joins the TRAITOR CLASS.

 

[Guest]

Right you are - this experiment in unmitigated greed is not going so well these days...it turns out that the market does not know best. The market does not care, it has no compassion or concern - it feels no responsibility. If the market can make a buck today by doing something despicable to the environment or the people it feels obligated to make that quick buck. If you can drill an off-shore oil well for a few million dollars less by avoiding operating safely you are obligated to do so for your shareholders.

Republicans seem to think that unions and regulations were conjured out of thin air, with no horrendous abuses by the wealthy having caused them to be created.

The idea that 'he who dies with the most wins' has long been the drive behind America, and it is stupid. Quality of life, not quantity of wealth should be our primary concern.

 

[Guest]

How long has the Seante been stalling on starting legislation on assuring unique cancer treatment medications will always be available? Ans: A year and counting. . .

 

[Guest]

Good kid, he understood perfectly well the greedy american way