Sen. Bob Casey to Tax Facebook Expatriate
Senator Bob Casey has co-sponsored a bill which would tax those who renounce their U.S. citizenship for monetary gain. The legislation, co-sponsored with New York Sen. Chuck Schumer, is meant to be a direct hit on Facebook co-founder Eduardo Saverin, who recently announced he planned on renouncing his citizenship and moving to Singapore, permanently, with the $2 to $4 billion he’s set to make as the social networking site goes public.
“Democrats are positioning themselves as the “defenders of the middle class,” and Sen. Bob Casey Jr. is honing that message by attacking the top .001 percent of income earners,” notes PoliticsPA of the move. Saverin, who Casey’s office has mentioned specifically in their press release with the legislation, is trying to avoid paying $67 million in taxes when Facebook goes public.
According to the Cato Institute, 1780 Americans renounced their citizenship in 2011, compared to just 235 in 2008. U.S. law bars expatriates from re-entering the country and again becoming citizens.
“Eduardo recently found it more practical to become a resident of Singapore since he plans to live there for an indefinite period of time,” Saverin’s spokesman has claimed. The media has seen his move a bit differently, though, and his move prompted many right wing news outlets to blame Democrats for the future ex-pat’s move, even though taxes are lower today than they were before the president came into office.
Many studies dismiss taxes as a reason to get the hell out of the land of the Dodge Caravan. Others blame it entirely.
As noted by Forbes/Cato writer Doug Bandow, “My Cato Institute colleague Dan Mitchell unkindly compared this to the “exit tax” imposed by German Nazis and Soviet Communists on departing Jews—the estimated value of his holding pre-public offering was significantly less than what he is about to realize.” So, what does that make Bob Casey — and, gasp, what does that make us?