Just when you thought the soak-the-rich arguments couldn’t get any more perverse, now comes a bill introduced this morning by Senators Chuck Schumer and Bob Casey, CNNMoney is reporting, “that would prevent [Facebook co-founder Eduardo Saverin] from ever returning to the United States.” The Brazilian-born Saverin became a U.S. citizen in 1998, but he’s been living in Singapore since 2009. He’s been in the news lately because he renounced his U.S. citizenship earlier this year, presumably to avoid income and capital gains taxes on his Facebook shares, which go on sale tomorrow.
As CNN describes the “Ex-PATRIOT Act:”
The proposal says that if a wealthy American seeks to renounce their [sic] citizenship, it will be presumed they have done so for tax purposes, unless the individual can convince the IRS otherwise.
If the person is unable to convince the IRS, they will be subject to 30% capital gains tax on future U.S. investments no matter where they live. Furthermore, they will not be allowed back into the United States. “Period,” Schumer said. “They could not set foot in this country again.”
Ingrate! In fact, that’s pretty much how Schumer looks at it:
“Saverin has turned his back on the country that welcomed him and kept him safe, educated him, and helped him become a billionaire,” Schumer said. “This is a great American success story gone horribly wrong.”
Do you suppose that what’s “gone horribly wrong” is a tax system that encourages people like Saverin to leave? Ask the people leaving California, Illinois, and New York.