‘Ex-Patriot’ Games: Vindictive Senators Propose Bill That Would Ban ‘Tax-Dodging’ Facebook Co-Founder From Reentering U.S.
- Posted on May 17, 2012 at 4:38pm by
Becket Adams
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Senators Chuck Schumer (D-NY) and Bob Casey (D-PA) have proposed a new law that would “set a 30 percent capital gains tax rate for expatriates on all future investment,” and ban people like Facebook co-founder Eduardo Saverin from reentering the U.S., Gizmodo and POLITICO report.
“Saverin has turned his back from the country that welcomed him, kept him safe, educated him and helped him become a billionaire,” Sen. Schumer said at a press conference with Sen. Casey, adding that the country should “defriend” Saverin.
Saverin, you may remember, renounced his American citizenship shortly before the social network announced it was going public.
“Facebook plans to raise as much as $11.8 billion through the IPO, the biggest in history for an Internet company,” Bloomberg reports.
Eduardo Saverin
“Saverin’s stake is about 4 percent, according to the website Who Owns Facebook. At the high end of the IPO valuation, that would be worth about $3.84 billion,” the report adds.
Saverin’s decision to renounce his citizenship and move to Singapore, a country where there is no tax on capital gains, could save him as much as $67 million. Unsurprisingly, the thought of losing all that taxable income has really riled up a couple of senators.
“This is a great American success story gone horribly wrong,” Sen. Schumer said.
Tom Goodman, spokesman for the Facebook co-founder, claims his client, who has lived in Singapore since 2010, didn’t base his decision on taxes but on the fact that he has major investments in that country.
“[Saverin] recently found it more practical to become a resident of Singapore since he plans to live there for an indefinite period of time,” Goodman wrote in an e-mail to Bloomberg.
And although Saverin is still subject to an “exit tax” on his Facebook holdings prior to dumping his passport, “it will be much less than he would have paid if he remained an American citizen once Facebook had gone public,” POLITICO’s Tony Romm writes.
Saverin insists it’s not about avoiding taxes.
“I’m not a tax expert,” he said, according to the NYT. “We complied with all the known laws. There was an exit tax.” “This had nothing to do with taxes. I was born in Brazil, I was an American citizen for about 10 years. I thought of myself as a global citizen.”
Nevertheless, senators Schumer and Casey want to ensure nothing like this ever happens again.
“The two Democrats unveiled a bill called the Ex-PATRIOT Act, or the ‘Expatriation Prevention by Abolishing Tax-Related Incentives for Offshore Tenancy’ Act,” Romm reports.
“It may never even rise to the level of committee consideration, but if it does pass, it would require Saverin and others who renounce citizenship to pay taxes at a 30 percent rate on any U.S. investment,” he adds.
However, the penalty will only “prospectively impose a tax on an individual’s future investment gains,” according to the bill.
This means “it may not touch amounts Saverin stands to make with the IPO and others who long ago dodged the tax bullet,” the report adds.
“Schumer said it would still affect Saverin and others who invest in the United States to maintain their net worth,” POLITICO notes. “The bill would create exemptions for those who have good reasons to give up their citizenship and sets a floor on who would be affected by the tax penalties.”
Sen. Schumer ended with a message for the Facebook co-founder: “Pay your taxes in full, or don’t ever try to step foot in the United States again.”
Sen. Chuck Schume, Eduardo Saverin, & Sen. Bob Casey
Well, what does that mean?
"If Saverin were to try to visit, say, Silicon Valley from his new home in Singapore (where he'll pay zero taxes on his Facebook doubloons), he'd be promptly turned around and sent packing," Gizmodo's Sam Biddle writes.
Sen. Schumer insists the bill isn't targeting Saverin personally.
"We're not targeting one person, we're targeting all people who have done this over the past 10 years," Sen. Schumer said.
Writing on The Blaze blog, Nick Rizzuto had strong words for senators Schumer and Casey:
Let’s call this what it is: a punitive tax and permanent exile for wealthy Americans who choose to flee the atmosphere that has been created by the government.
[...]
This is what you get from a government that refuses to acknowledge and address the conditions that drive out its own citizens.
This article has been updated.
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Comments (108)
football lady
Posted on May 17, 2012 at 6:10pmWould rather ban Chuckie from entering the halls of Congress FOREVER.
Report Post »MAMMY_NUNN
Posted on May 17, 2012 at 7:14pmI think we should check on Chuckies tax status first.
Report Post »jhaydeng
Posted on May 17, 2012 at 9:12pmSchumer is the most appalling Senator ever to represent (term loose) New York! He and Gillebrand are so Socialist that Marx is shaking in his grave!
Report Post »rachany
Posted on May 18, 2012 at 5:49amThis is just like in Cuba. At the beginning of the Robolution when people decided to leave for the US, they had their possessions taken inventory of, by the Government dogs, and they had to leave everything for the government or they were not allowed to leave. If you a painting, or a refrigerator that you wanted to give to your brother, you had to do it before you made known that you intended to leave the country. One big example of that was when Celia Cruz, the cuban star singer, left the country, they made her take off all the jewelry she was wearing (real and expensive) and they took all of it from her at customs.
Report Post »This is socialism at its “best”.
The funny thing is that nobody does that to the artists that leave european countries, for example John Lennon, and other british musicians that leave UK because of the high tax rates and ocme to the US. I guess paraphrasing the popular song title “Give peace a chance”, maybe he meant “Give ME a chance”
johnjamison
Posted on May 18, 2012 at 7:31amOh no you mean he won’t get to re-enter the tax he77hole the liberal have made out of America…..I guess he’ll just have to spend his billion in a country where it spends like billions.
Report Post »Workingstiff
Posted on May 18, 2012 at 8:13amIt was his own federal taxing policies (which nobody can understand) that he and his weasels
Report Post »voted for which created the unfairness that causes people to run away from America.
Then the same people who created the taxation system have the gull to complain about it’s unfairness and blame the people follow the rules. You professional politicians created the problem now “own it” and correct it or resign !!!
hidden_lion
Posted on May 18, 2012 at 8:25amChuckie is pure commie. It is none of his business why someone gives up their citizenship. It is probably for crap like this. Once they renounce their citizen status, Ol’ Chuck has no authority to demand anything from them, no taxes, no explanation, nothing.
Report Post »turkey13
Posted on May 18, 2012 at 11:17amChuck Smuckester and Bob Lazey – life long politicians are ticked because they didn’t get a cut to their private off shore accounts. Once in America a person could use that dangling carrott to work 14 hours a day and get a reward at the end of the tunnel. Now when you come out on the other side a mob is waiting to take 60% of it for the good of the country. This won’t stop the hole in the dam – Chuck and Bob will try to plug it but the hole will just get bigger. Taxes aren’t fair at all anymore – folks that make at least $20 grand should pay at least 2 or 3% for all those same benefits the wealthy pay big bucks for. If Chuckie really is interested if fairness he will do this same thing to GE who moved MFG to China and screwed the USA out of a $ Billion, not a lousey $ 67 million.
Report Post »MAMMY_NUNN
Posted on May 18, 2012 at 7:13pmLet’s see how Chucky votes on amnesty and Citizenship the next time it comes up !!!
Report Post »kindling
Posted on May 17, 2012 at 6:10pmI better not see any Republicans support this kind of stuff or I will be sending money to anyone that will run against them in the next election.
Report Post »soybomb315
Posted on May 17, 2012 at 6:17pmdont kid yourself – you wont give money to a democrat or 3rd party opposition. You will probably sit back and say they are the ‘lesser or two evils”. Or maybe someone would convince you to go along for the sake of the supreme court.
Report Post »honor.asawayoflife
Posted on May 17, 2012 at 6:04pmso then is it bye-bye warren buffet? bye-bye tim geitner? bye-bye kathleen sebelius? bye-bye bill richardson? bye-bye charlie rangel? bye-bye GE? this facebook dude should just apply for a job in barry’s administration. apparently, it’s a resume enhancer.
Report Post »MAMMY_NUNN
Posted on May 17, 2012 at 10:41pmWhat happened to the rule if you owe taxes they revoke your passport a while back ?
Report Post »turkey13
Posted on May 18, 2012 at 6:37pm@Mammy Nunn Where were you when Obama was selecting his Szars, 6 had to decline because of tax problems. Then there was Turbo Timmy that was the only person who could save us! Then there Was Charlie Rangle a sitting Senator – owed $700,000 in taxes. Then there Warren Buffit – You know – the rich need to pay more – he owes 1.1 billion to IRS. All these people have their passports because you are talking about two government agencies communicating and that will never happen.
Report Post »Grace1798
Posted on May 17, 2012 at 5:57pmIf Obama is reelected, I won’t want to stay here (USA) either. He will turn this nation into a hellhole! And come back……….to what? After Obama is finished, they won’t let you leave. It’s the same as Nazi Germany….there was an open opportunity for many to flee and they did but misery for those who were not allowed to leave after Hitler took over.
Report Post »socialism.rocks
Posted on May 17, 2012 at 6:21pmlmao such a patriot.. leave
we dont want you or need you there is a milllion plus people willing gladfully to take your place…
Report Post »realistic_01
Posted on May 17, 2012 at 9:36pm@socialism.rocks
Report Post »Yeah, but who’s going to give them all the welfare they come here for once all the producers leave? Oh, we’ll just borrow more from China, ha ha ha.
socialism.rocks
Posted on May 17, 2012 at 11:42pmrich people pay taxes??? hell they use more entitlements then they pay…
america would be better off without them…the cost of global asset protection “military” is the largest budget busting thing on to americans
if all rich people leave… the more polarized the world gets.. they get theirs in return….rogue nations.. taking siezing their wealth
no dang asset protection let them pay for it themselves the real entitlement….
leave rich people in hordes leave..take every dime nickle with you and take the ********* losers with you
you arent really needed… you do nothing for america keep thinking globalized open markets are going to last forever
keep thinking americans dont have the choice to do business from home or aboard…
i am all for a weaker america more polarized world….
Every action has a Opposite action
also those who hate taxes…. the end of rule of law is coming
Report Post »might will be right~
we will have our day natures law is coming
hidden_lion
Posted on May 18, 2012 at 8:30amSocialism-
Report Post »“might will make right..”
The good thing is people like you won’t live very long in the coming struggle. Once your kind fall on the sword of evolution, this country can get back to it’s former glory as a land of freedom and opportunity.
michael48
Posted on May 17, 2012 at 5:50pm“cash cow Berlin Wall”…the dem-wits will not be happy until they have every dollar in the Universe..even then it would not be enough…these comrade Gov. Gumbas HAVE TO GO…cut the spending YOU USELESS IDIOTS!!!!!!!!!!!!!!!!!!!
Report Post »TurboCat
Posted on May 18, 2012 at 4:10amSchumer thinks he’s King. He feels ‘entitled’ to other people’s money so he can waste it. And yeah, it IS a new bill to target one individual just because he dared to piss off Chuckie Schumer. These people need to stop trying to increase taxes on ANYONE until they clean up the CORRUPTION of the GSA, the Dept of Injustice, and the MYRIAD of crony Solyndra type taxpayer-funded B.S. Because they are totally disrespecting the taxpayer when the GSA gets away with FLAUNTING their abuse in the taxpayers face!
Report Post »Cavallo
Posted on May 17, 2012 at 5:45pmWhat exactly does US citizenship give you that you can’t get as a resident, or as a foreign national? Access to food stamps? Being able to carry a weapon concealed? Having 1/300,000,000 of a say in the presidential election? Is all that worth millions of dollars in taxes? What does the United States do for an individual worth that amount of money?
Report Post »socialism.rocks
Posted on May 17, 2012 at 6:15pmthe full backing of the usa… asset protection is worth its weight in gold…
When a country goes rogue takes his fundage.. no protection…
asset protection the full backing of the USA is worth more then what they will take in taxes…
let him go
we are living in a world of geo polarisms…… you dont know which country will nationalize all assets..
think its not worth… asset protection… its on him.. people dont think long term only short term
Report Post »soybomb315
Posted on May 17, 2012 at 6:18pmgood point.
with all of our debt, it is wise to not burden yourself with this country
Report Post »soybomb315
Posted on May 17, 2012 at 6:32pm@socialism
Report Post »i guess you are not aware of the IRS requirements that foreign banks report US citizens assets. IRS can seize/freeze US citizen assets with no warning or recourse
MAMMY_NUNN
Posted on May 17, 2012 at 7:32pmFor those not up on the tech world you may be interested in this article off the coast of San Francisco
Report Post »http://sfist.com/2012/05/09/obscenely_rich_tech_folk_are_still_building_their_island_utopia_off_the_coast_of_san_francisco.php
shoulda coulda woulda
Posted on May 17, 2012 at 5:41pmThe land of the free unless you make Chuck mad. If Chuck and his cronies hadn’t screwed up the tax system so bad to begin with maybe the wealthy would stay.
I am so tired of congressional blow-hards trying to get their name in the paper.
Report Post »Cavallo
Posted on May 17, 2012 at 5:35pmEx Post Facto? Bill of Attainder? I guess all that means nothing, eh?
Report Post »DSTSS2010
Posted on May 17, 2012 at 5:32pmHave you noticed that in all the pictures of these Liberal Boneheads, they look like they’re simple-minded.
Report Post »socialism.rocks
Posted on May 18, 2012 at 4:53amand you republican bigots are at your end.. the world has moved on you arent the majority of anything
and payback is coming your way..
your day is coming the law will change and it will be you getting the short end…
and there is plenty of payback coming your way
Report Post »single stack
Posted on May 17, 2012 at 5:22pmSchumer (may piss rain down upon his head) is dancing awfully close to bill of attainder territory.
Report Post »soybomb315
Posted on May 17, 2012 at 5:22pmWhy is it that Mitt Romney, while at Bain, encouraged taking advantage of all the tax loopholes, tax breaks, government subsidies – and is declared an economic hero….But when a private individual tries to avoid paying taxes – he is a traitor.
Hypocrisy
Report Post »rsanchez1
Posted on May 18, 2012 at 1:48amFalse, Chuck Schumer and his cronies in Congress throw Romney under the bus for Bain as well, just to help their buddy in the White House stay there.
Report Post »soybomb315
Posted on May 18, 2012 at 7:22ami was talking about the standard republican
Report Post »Frodo RinosBane
Posted on May 17, 2012 at 5:20pmJust like the Senate. Smokescreen against a private citizen to take the eyes off their inept-do-nothing Bad Selves.
Report Post »DogTags
Posted on May 17, 2012 at 5:17pmDemocrats are trying to erect a virtual “Berlin Wall” around American citizenship. What authority does Congress have to punish a person for leaving the country because of high taxes?
So if you renounce your citizenship because you haven‘t been proud of your country in your adult life that’s fine, but if you leave to avoid heavy taxation you must pay a penalty? This is essentially a Free Speech tax.
Report Post »soybomb315
Posted on May 17, 2012 at 5:24pmso much for ‘voting with your feet’…
Report Post »lovenfl3
Posted on May 17, 2012 at 5:29pmAbotu 2 hours after this video http://www.youtube.com/watch?v=0t5bgM61ULc came out, the guy who made it got a call from a guy who used to work for Chuck Schumer and is also friends with Adam Estes, a writer for the Atlantic Wire. He wanted to know the source for the part of the video about the Saverin situation. This morning, Adam Estes put out a story about how Schumer is going after Saverin. This is why we need to keep putting out information, we can’t count on the MSM anymore. Crazy times.
Report Post »republic2011
Posted on May 17, 2012 at 5:14pmWell with that logic, Charlie Rangel and the boys might actually get deported to the Dominican Republic for good. Let’s do it!
Report Post »FB247
Posted on May 17, 2012 at 5:12pmWill the Senators take the same stance, when Obummer is voted out, and all the Hollywood elite start threatening to leave the country?
Report Post »Individualism
Posted on May 17, 2012 at 5:08pmwhat a hypocrite he will probably move back to Israel to avoid taxes and they can’t force you to pay taxes in another country, gl with that,
Report Post »soybomb315
Posted on May 17, 2012 at 5:27pmI believe what Savarin is doing is called ‘blowback’. Cause and effect
Report Post »tzion
Posted on May 17, 2012 at 5:32pm1. When did he EVER live in Israel as a citizen?
2. You’re calling him a hypocrite for something that YOU say he might do in the future?
I’m not too fond of this bill either but your comment goes beyond disagreement.
Report Post »Blackhawk1
Posted on May 17, 2012 at 5:07pmHow about the liberals go after Buffets billion he owes in back taxes?
Report Post »moussiagilda
Posted on May 17, 2012 at 5:06pmCouple of foo-foo heads who wish they had any idea of what justice and rationality is. Lost in their numskulled nightmare. Believing, only believing, that they know what is right.
They both have bad hair. Therefore.
Report Post »georgesgirl
Posted on May 17, 2012 at 5:04pmYou can’t spend 30+years teaching kids that there is nothing “exceptional” with the U.S. Have a president say “I’m sure Great Britain thinks they are exceptional too”. Then turn around and be surprised when citizenship is treated like a commodity. It can be had for a better price somewhere else. Personally, I find an exit tax as disagreeable as a death tax. The money has been taxed once already. This ex-patriot dribble is just Schumer finding another microphone rather than doing his job. Say a budget or something?
Report Post »GrumpyCat
Posted on May 17, 2012 at 5:00pmTune in tomorrow when when hear Gov. Brown attempt the same thing on ex-pat Kalifornians.
Report Post »wordweaver
Posted on May 17, 2012 at 4:58pmSenators, I would rather see you guys forget about this kind of trivial nonsense and get to work figuring out how to pass a budget that will start that debt clock moving the other direction, or pass some legislation that will contain financial incentives for companies to grow here in America. You know, stuff that Americans care about. FOCUS!!!
Report Post »Carbine
Posted on May 17, 2012 at 4:55pmHmmmmm Seems to me that this coupled with the dems “Departure” tax is right out of the book from what the Nazis did to Jews in the 1930s and early 40s. After that the Nazis dropped all pretense and just started stealing and murdering the Jews. Good going Chucky, you have a place at the Nazi table. BTW, There are few, more despicable senators, than Chucky
Report Post »JessicaChasmar
Posted on May 17, 2012 at 4:51pmI think it’s brilliant. This guy is a hero in my book.
Report Post »Blackhawk1
Posted on May 17, 2012 at 5:06pmEnvy others success much?
Report Post »Cavallo
Posted on May 17, 2012 at 5:20pmI think she means Savarin and not Schumer. I hope.
Report Post »soybomb315
Posted on May 17, 2012 at 5:27pmSavarin is a hero – its a revolutionary idea that is probably keeping alot of people in government up at night.
Dont be surprised if republicans jump on board with this law
Report Post »football lady
Posted on May 17, 2012 at 6:12pmmine too!
Report Post »CatB
Posted on May 17, 2012 at 4:46pmPerhaps if they stopped running taxpayers out of the country .. they would not have this “problem” …. their war on the rich .. is going to have consequences.
Report Post »toomuchgovt
Posted on May 17, 2012 at 4:45pmSo Tax Dodging is only okay for members of the government? Charlie Rangle, not to mention to numerous government employees who are “behind”/”failed to file / but not for someone that wants to keep more of what they earned? Maybe if the U.S. was more business friendly, not on such a communist path this guy would stay.
Report Post »