Business

‘Real News From The Blaze’ Discusses Facebook Co-Founder De-Friending USA

Friday was the launch of Facebook’s highly anticipated IPO, finishing the day with a mere 23 cents a share gain, suggesting a cooler-than-expected reception. Rather then focusing on the news of the newly minted billionaires in Northern California, the “Real News” panel opened Friday discussing the action of Sens. Chuck Schumer and Bob Casey in Washington D.C., who have introduced legislation that would seek to tax Ex-patriot millionaires and billionaires at a 30 percent capital gains rate based on the highly publicized citizenship withdrawal of Facebook co-founder Eduardo Saverin.

Saverin is taking up residence in Singapore, a country without a capital gains tax, making a move that will potentially save him $67 million dollars in taxes. There’s a lot of outrage over what many see as a tax dodge, but Saverin points out he does have to pay a 15% exit tax. The Washington Post reports on what will go into the “ex-PATRIOT Act:”

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,” according to a release from Schumer’s office, and they would pay 30 percent capital gains tax — the same rate as people pay in the U.S.

If an expatriate can prove he or she has a legitimate reason for renouncing U.S. citizenship, no penalties will apply.

The bill would tax any prospective gains an expatriate who has renounced his or her citizenship in the past ten years who did so for purposes of tax avoidance. In Saverin’s case, Schumer spokesman Brian Fallows said that if the Facebook co-founder liquidates all his holdings in the company before the bill is passed, he will escape penalty. However, if he takes his time selling off his assets, for the purpose of letting it grow and then seeks to sell off and he would pay 30 percent on those earnings.

According to Schumer’s office, 1,780 people gave up their citizenship in 2011, a rise from 235 in 2008.

Some argue though that the legislation goes too far by harming the U.S.’ pro-business global reputation, and forwards un-American sentiments. A recent column in The Wall Street Journal makes sure to acknowledge that the editorial board does not have any sympathy for Saverin, but believes the suggested legislation appeals to “the age of envy” and is a move by senators who “hope to score political points by punishing the fleeing rich who will strike most Americans as unpatriotic.”

Whatever Mr. Saverin’s motivation, the more important point is that it is his decision, however misguided. America was built on millions of similar individual decisions to come to our shores. It is precisely that ability to decide for oneself that has made America such a magnet for two centuries.

The way to continue to be a magnet for the best and brightest is not to impose Soviet-style exit taxes to punish people who want to leave the country. That is what oppressive and demagogic regimes do, and it’s humiliating to see U.S. Senators posture in such fashion. The way to punish Mr. Saverin is to make the U.S. so appealing and dynamic again that he’ll be sorry he ever left.

Will Cain had some strong feelings towards the ex-American during the opening segment of “Real News” Friday.

“Eduardo Saverin is an ass” said Cain Friday. With that in mind though, Will took agreement with many of the points in the Wall Street Journal column, questioning whether the punishment sets a more negative precedent than Saverin’s action.

S.E. Cupp commented that the story gives further evidence that lawmakers should work to make the United States a more attractive place for entreprenuers and business leaders, who would in turn want to stay here.

 

Comments (32)

  • chillinout
    Posted on May 26, 2012 at 1:38pm

    I can understand it. For Americans that don‘t live and work and invest outside of the states they don’t understand how the government is limiting us from doing so.

    A couple of years ago Obama’s boys made new laws on restricting how Americans are allowed to trade certain asset classes which made my accounts traded in other countries illegal so I had a choice to either give up the income and flexibility or set up residence outside of the states. I now live outside of the states. Now the govermment has set up new asset reporting laws which if not properly completed I can be fined $10K – $50k for paperwork error. Next the government is requiring financial institutions around the world to report U.S. citizen customers account activity to the IRS and even withhold 30% of deposits made and the customer has to apply to the IRS to get it back.

    The U.S. is not directly outlawing a citizen from participating in world markets but it is making barriers to prevent citizens being welcomed at non U.S. based institutions. Everything from simple bank accounts in the country I live in to investments in financial instruments are becoming a problem Americans are being told they are not welcomed.

    The U.S. gov’t is basically setting up an invisible “Berlin Wall” around us and a person like Saverin with his means and world investment interests didn’t have much choice but to drop the US citizenship.

    Congress should be made at itself for making it better for Saverin to leave the s

    Report Post »  
  • whitecracker
    Posted on May 22, 2012 at 3:02pm

    When Senators from New York State want to introduce bills limiting an individuals right to move around is when our country has passed rights of freedom. The wars we are in and want to have are nothing for freedom. They are for communism. Bring back Hitler! finish killing the Jews.

    Report Post »  
  • Dan19uk
    Posted on May 22, 2012 at 7:43am

    “Discusses Facebook Co-Founder De-Friending”

    And this is “real” news.

    Report Post » Dan19uk  
  • Nervous Investor
    Posted on May 21, 2012 at 11:58am

    I am afraid that Will Cain, Shumer et al are the assess in this situation. When a Government starts to treat their people as pawns and assets to be worked and taxed (aka chattels or slaves) they give up all moral authority to criticize the action of the slaves voting with their feet. The fact is that when you make life unacceptably complex or hard within your State, people will leave – it has happened throughout history worldwide and many of such migrants BUILT the USA – get over it. Of course, using new laws like the FATCA one that comes into force next year, the US is seeking to enslave ALL people in ALL countries regardless of citizenship by imposing significant new banking costs on them and deeming a new category of person beyond US citizens and beyond legal US residents (or even illegal US residents for that matter) and now including people as “US Persons” merely because they spend more than 31 days in a year in the US or have a “Care Of” address in the US or might have a US Phone number (like maybe magicJack for example used to call their relatives, friends and business vendors in the US). These newly anointed US Persons (who are NOT US citizens or residents) will now have to employ Lawyers and Accountants to file financial returns with the IRS each year ….. this is an outrage and WILL alienate business from the US and will alienate America’s FRIENDS around the world. The US is transforming into a new version of the USSR. This misguided behavior grieves me.

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  • 1Karen
    Posted on May 20, 2012 at 9:22pm

    Punishing him equals slavery. A mind is a terrible thing to waste, but it‘s worse if our government can decide your mind can’t leave our boarders if it can be put to good use here.
    The Gambler’s code says he can leave the table with his money at any time.

    Report Post » 1Karen  
    • rickc34
      Posted on May 30, 2012 at 1:13am

      Smart kid he got out while he can. Was blown away how the dems went on the attack after facebook helped the dems so much and did sh_t for the repubs

      Report Post »  
  • desert buckeye
    Posted on May 20, 2012 at 7:12pm

    This demonization of the “rich” reminds me of the Nazi’s demonization of the Jews, prior to WWII. The Jews that had the means to leave Germany, did so. Those Jews then turned their attention to defeating the Nazis. They helped create the A-bomb.
    Schumer is a blind fool.

    Report Post »  
  • EmbassyMarine
    Posted on May 20, 2012 at 2:56pm

    As someone who has lived overseas in excess of 20 years both in the military and out, I can tell you that not only is this bad legislation (no ****?) but the will never be able to enforce this. If someone leaves the US and the Gov. tries to confiscate taxes, the courts have no jurisdiction in any foreign country. The new locations’ gov. will promptly tell the US to shove it! Also, lets say I have $5 million and I want to leave. I form a new company in my new location, and will sell my assets to that new company for $1.00 and not break one law. Assets leave the jurisdiction of the US. BYE-BYE. Also, If I own bearer shares in a US company, I simply take them with me to my new location, but that is not necessary. There are many ways to do this legally even with this stupid law.

    Report Post »  
  • Dahveed
    Posted on May 19, 2012 at 7:41pm

    This reminds me of the story of the 10 guys that go drinking beer every night and how the richest guy gets to pay $50 bucks for his share of the group’s drinking tab. Well this is what happens that rich guys gets tired of paying for everyone else’s beer and leaves. Predictably, some of his drinking buddies are pissed he’s quit buying their beers. Rather than being gracious for the beers they enjoyed for free, they become pissy about losing their entitlement.

    Report Post »  
    • Paranoid Patriot
      Posted on May 20, 2012 at 3:40am

      Amazing only in DC would someone find out about a guy leaving the country rather n deal with the punishing taxes and regulation, and think “let’s tax punish and regulate and him leaving“ instead of ”let’s get rid of some of the taxes and regulations so people with money dont pick up and leave.”

      Report Post »  
  • tominasia
    Posted on May 19, 2012 at 7:39pm

    Sens. Chuck Schumer and Bob Casey, two more communist leaning idiots. If you are from New York and Pennsylvania, please vote these un-American jerks out of Washington.

    Report Post »  
  • smv803
    Posted on May 19, 2012 at 5:47pm

    Whom among us wouldn’t do the same? It isn’t because of greed; why should everything we’ve worked for be given to an institution we know will squander the money away? Remember the GSA if any of you are lucky enough to have that problem!

    Report Post » smv803  
  • Mister July
    Posted on May 19, 2012 at 2:39pm

    “If an expatriate can prove he or she has a legitimate reason for renouncing U.S. citizenship, no penalties will apply.”
    Red flag (pun intended) line of the story.

    Report Post » Mister July  
  • rcfjr
    Posted on May 19, 2012 at 2:07pm

    Saverin made the money under the umbrella of the USA. So when it’s his duty to pay his umbrella cost, he runs like a coward. Everone needs to remember this cowards name and “give no quarter” to him in the future.

    Report Post » rcfjr  
    • Reader
      Posted on May 19, 2012 at 5:17pm

      to rcfjr Really? crucify someone making a smart business move? If the U. S. wants to keep money in the country they should maybe make it appealing. Not 30% taxation. Being able to move to the place you want to live is called Freedom. the expatriot act is something right out of Atlas Shrugged. The regime running this country can be inducted into the Atlas shrugged hall of fame.

      Report Post »  
  • saranda
    Posted on May 19, 2012 at 1:57pm

    Americans have been hiding money offshore for decades. To condemn anyone for doing it in a more upfront way is just hypocritical unless you have been oppsed to offshore accounts for decades, something I suspect most repubs have not been. Even Romney keeps money offshore.

    Report Post »  
  • jcvillar
    Posted on May 19, 2012 at 1:50pm

    I have a better idea. First, we build a really big wall all around the country. Then we top it with barbed wire and about a 100 foot section of open land on the interior side riddled with land mines. Guardtowers could be errected at 100 yard intervals all around the perimeter, and . . .

    Oh, wait. That would be dumb. How would the illegals ever be able to get in? Never mind!

    Report Post »  
  • flatspots479
    Posted on May 19, 2012 at 1:48pm

    Liberal politicians made Ca. unfriendly like many states where people voted with their feet. This man finds the USA unfriendly and votes with his feet. Why would you stay and live under Obamanomics if you are well off? If this country was business friendly he would stay but we have the highest taxes around the world and liberals want to tax their way out of the mess they created. Fault the guy? No. He is business savy and lucky to leave despite attitudes to the contrary.

    Report Post » flatspots479  
  • CommunismSurvivor
    Posted on May 19, 2012 at 1:41pm

    I have more respect for someone who actually puts their money where their mouth is than for someone who continually badmouths this country while continuing to use all the benefits of being its citizen.

    You don’t like this country? GTFO. End of story.

    Report Post » CommunismSurvivor  
    • Reader
      Posted on May 19, 2012 at 5:24pm

      Yes I agree with you Communismsurvivor. If you don’t like it here you can leave. All those whining about racism and how no one else has ever experienced racism like their race. I say they can also GTFO. I don‘t know very many people know matter their color that hasn’t experienced racism. We are all the human animal. We should all pull together. Think of what we could accomplish in this country if we all wanted Freedom and we all worked towards Freedom.

      Report Post »  
  • CommunismSurvivor
    Posted on May 19, 2012 at 1:37pm

    I have more respect for someone who actually puts their money where their mouth is, than for someone who has the nerve to badmouth this country while at the same time continuing to live here and use all the benefits of being its citizen.

    You don’t like this country? GTFO. End of story.

    Report Post » CommunismSurvivor  
  • n.debrabant
    Posted on May 19, 2012 at 12:47pm

    Schumer is wrong. This would be very bad for out country if it were to pass. If he want to leave, so be it.
    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,” according to a release from Schumer’s office, and they would pay 30 percent capital gains tax — the same rate as people pay in the U.S.

    Heaven help us all if this “ex-PATRIOT Act:” passes.

    Presumed? You can‘t preume what’s in anyone’s mind. I don’t like the way this country is headed.

    Report Post » n.debrabant  
    • flntlok1949
      Posted on May 19, 2012 at 2:12pm

      $67 million? I don’t blame the guy for wanting to leave. It’s not America he is fleeing, but the Government that’s out to steal money he earned by hard work and intelligence , and redistribute it to slugs and criminals! This legislation is nothing more than a desparate attempt by the greedy left to hang on to the people who pay big taxes – or, tor make them pay big time for the“Priviledge”(?) of renouncing US citizenship! This make the wealthy nothing less than prisoners of the Government – unless they bribe the jailer!
      I am not wealthy, and I love my Country; but I, too would try to leave, if I had the means, rather than live under increasing Socialist rule with the kind of people who hate all that America has ever been!

      Report Post »  
  • TRILO
    Posted on May 18, 2012 at 8:32pm

    If he wants to go then let him. Why would anyone care. The last I thought our country was a place where people were free to make choices. Even the freedom to leave. It is my understanding that he has dual citizenship and was not born a US citizen. Corporations and people with the means will always migrate to a place where they can protect their wealth.

    The USA now ranks 10th on the world’s financial freedom index and Singapore ranks 2nd. Where would you go with that kind of cash. I am sure he sees the writing on the wall. WTSHTF he will not be around to try and have to salvage what would be left of his wealth. Furthermore, he will have more freedom to invest in new businesses without all of the red tape and taxes. Last week I read several articles of where wealthy French citizens are looking at ways to leave their newly elected government that wants to impose higher taxes.

    As usual our idiot politicians want to punish people for going where they have more freedoms rather than fix the reason why people want to leave.

    http://www.heritage.org/index/ranking

    Report Post » TRILO  
  • Apple Bite
    Posted on May 18, 2012 at 8:21pm

    Schumer is such a smuck, that he doesn’t even realize the just how large the can of worms is about to open by going after those former citizens that gave up their citizenship! Instead of looking at not only the rate of the taxes but the number of taxes accompanying them, Liberals are literally chasing Free Enterprise thinking people out of the country! Thats where the jobs are, you dopes! Free Enterprise allowed this country to develop into the mega power it is today, NOT BIGGER GOVERNMENT!

    If I had the money to leave, I’d been gone already. Why wait to be robbed by the very government that’s supposed to simply protect you from tyranny outside and within our borders?

    Report Post » Apple Bite  
    • watchdogmom
      Posted on May 19, 2012 at 4:11pm

      yep! they are doing it on purpose. Communist move. What made it worse for me is commie Schumer acting like a tough guy. (wimp) The amount of money govt.politicians owe in taxes is unreal. They need to pay up also. Preferably,before they are tar and feathered out of D.C..

      Report Post »  
  • cashbgoneagain
    Posted on May 18, 2012 at 8:09pm

    Land of the free? If you can’t leave for free, then you certainly are not free.

    Why is it these bozos don’t see the similarity to Soviet Russia and East Germany? The minute a nation tries to make it difficult to leave, people should leave. Perhaps voting these idiots out of office is a better idea!

    Report Post »  
  • Wringeaux
    Posted on May 18, 2012 at 7:48pm

    I hate it when people split hairs; but, I believe the correct term is un-friend not de-friend. Now I hate myself; and., It‘s all The Blaze’ fault. I‘m gonna’ sue for 20 trillion dollars and pay off the national debt. It’s only fair.

    Report Post » Wringeaux  
    • Stoic one
      Posted on May 18, 2012 at 10:54pm

      while you are at it go for 100 trillion in pain and suffering and take care of the unfunded liabilities our politicians have obligated we taxpayers with.

      Report Post » Stoic one  
  • Wringeaux
    Posted on May 18, 2012 at 7:36pm

    I hate it when people slit hairs; but, I believe the correct term in unfriend not defriend. There ! Now I hate myself; and, It‘s all the Blazes’ fault. I think I’ll sue for 20 trillion dollars and pay off the national debt !

    Report Post » Wringeaux  
  • Tri-ox
    Posted on May 18, 2012 at 7:31pm

    …AND, today, America de-friended the FB IPO – high volume, zero gain.

    Report Post » Tri-ox  

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