Well if the Democrats in Washington have their way with Eduardo Saverin as they are planning, no one will ever again be allowed to renounce U.S. citizenship. Now don’t get me wrong, I see no reason to renounce citizenship. I’ve read The Man Without a Country and I love the United States. I see no reason for wanting to leave. There are those, however, who see reason to expatriate from the country, usually for legal or tax reasons, the latter is why Saverin is leaving.
Eduardo Saverin is the four percent share holder of Facebook and as such stands to make some insane amount in the four BILLION dollar range when he cashes in on that IPO. Whatever, yay too much money. Well, he doesn’t want to pay taxes on that cash so he plans to expatriate to Singapore where they don’t tax capital gains. But, the will cane you over the slightest offense so it is a trade-off. Personally, I’d just pay the sixty-seven million in taxes precisely because its pocket change when compared to the four billion. Really.
Well, Charles Schumer (D-NY) and Bob Casey (D-PA) have a plan to get that money out of Saverin and in the process screw over every other expatriate out there. They have announced they will unveil the “Ex-Patriot Act”, it is funny they misspell it to make the assumption that anyone leaving the country or giving up their citizenship is unpatriotic. Well, yes, that is usually why you expatriate somewhere, you no longer care for your home country. Not a big stretch guys, also not that clever. Their premise is also completely flawed. They are going to pass a law that says if you have a net worth of two million dollars or more or you have a tax liability of an average of $148,000 over the last 5 years and you expatriate from the United States you are doing so to only to evade paying taxes. The person will have to prove that is not the case, and the IRS has the final say. Can you say hello bleak, dystopian future. You will literally become a slave to the state, who will have a say over whether or not you can now leave the country. I guess it is a feature of the soak the rich mentality in Congress among Democrats right now. Guess what they are going to be even more dictatorial with this law if it passes. They are going to make it retroactive for the last ten years so they can start chasing down people from the past, who might be guilty. Let me tell you right now, if you have the cash to meet the criteria you are guilty. Sure there will be some token deliberation, then they will determine how much you owe. It gets worse. How can it possibly get worse you say? Once the IRS has convened and handed out their verdict on their assumption of your guilt they will then tax the offender at a 30% rate otherwise known as tax rate non-resident aliens pay. So they now say you’re avoiding then treat you like a citizen of somewhere else to collect a higher rate. I don’t know if this bill has a chance in hell of passing, but I sure hope it doesn’t. If it does, we’re all screwed.