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Lawmakers to Saverin: Don't Come Back

'Ex-PATRIOT' Act to punish those who try to dodge taxes

By Kevin Spak,  Newser Staff

Posted May 17, 2012 10:06 AM CDT

(Newser) – Facebook co-founder Eduardo Saverin's decision to renounce his US citizenship—and, conveniently, a lot of the taxes from his expected IPO windfall—has struck a nerve on Capitol Hill. Chuck Schumer and Bob Casey will today announce a new bill called the "Ex-PATRIOT Act" (a typically dopey acronym meaning "Expatriation Prevention by Abolishing Tax-Related Incentives for Offshore Tenancy"), ABC reports. They said the bill is a direct response to Saverin's "scheme" to "duck up to $67 million in taxes."

The bill would re-impose taxes on expatriates, set a 30% capital gains tax rate on them, and forbid them from ever returning to the US. But that last part might not even be necessary; Talking Points Memo notes that US law specifically bans "former citizens who renounced citizenship to avoid taxation" from obtaining a US visa. That might be one reason that Saverin's lawyer has been trying to argue that his decision isn't tax-related.

Eduardo Saverin, co-founder of Facebook attends the 7th Annual Common Sense Media Awards honoring Bill Clinton at Gotham Hall on April 28, 2011 in New York City.
Eduardo Saverin, co-founder of Facebook attends the 7th Annual Common Sense Media Awards honoring Bill Clinton at Gotham Hall on April 28, 2011 in New York City.   (Getty Images)
Eduardo Saverin, co-founder of Facebook attends the 7th Annual Common Sense Media Awards honoring Bill Clinton at Gotham Hall on April 28, 2011 in New York City.
Eduardo Saverin, co-founder of Facebook attends the 7th Annual Common Sense Media Awards honoring Bill Clinton at Gotham Hall on April 28, 2011 in New York City.   (Getty Images)
Charles Schumer gestures during a news conference, March 8, 2012.
Charles Schumer gestures during a news conference, March 8, 2012.   (AP Photo/J. Scott Applewhite)
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May 17, 2012 11:04 PM CDT
I lived in a country which was hit by a severe recession. It was a hard time. But the people became patriotic and we started demanding more locally made goods. The owners of those companies were proud to help the country. I see in the U.S., the heads of corporations had a decision to make. Should we help our country and provide jobs? Maybe we don't need $50M extra profit?  Maybe we could settle for $20M and build our country. Yet they are exalted as the achievers who have earned the right to get where they are and for some that is the American Capitalist dream. They should not be taxed because they 'create jobs'   Is it American to go after profit at all costs and turn your back on your country? 
sobe
May 17, 2012 8:41 PM CDT
The only reason that Facebook is a success is that US residents made it successful.  Facebook owes all of its success to its members, and most of them are American.  So Saverin owes a lot to the US, and the least he could do is pay a little of it back to the US.  What he is doing makes him a really big piece of crap and deserves the worst, that ungrateful bastard.
PadrePio
May 17, 2012 3:18 PM CDT
How dare this furiner come in to America use our great country to get rich then slither away in order to beat some taxes. I say if this furin bastard ever tries to come back we ship him to Gitmo and leave him there for ever. Damn Furiners anyway.

 
Charles Schumer • taxes • Facebook • tax evasion • expatriates • Bob Casey • Eduardo Saverin • Ex-PATRIOT Act

 
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