Senators target Facebook co-founder for giving up citizenship, seek to impose taxes..

[joshh]

http://www.foxnews.com/politics/2012/05/17/senators-target-facebook-co-founder-for-giving-up-citizenship/

Yeah it's a FOX news link, deal with it.

The bill, though, could have repercussions far beyond Saverin's portfolio. According to a 2011 report by the Taxpayer Advocate Service, about 4,000 people renounced their citizenship between fiscal 2005 and 2010, with the pace of renunciations increasingly rapidly in recent years.
The Schumer/Casey proposal would put the burden on anyone who renounces their citizenship to prove they didn't do it for tax avoidance purposes. If they can't prove that, Schumer said, the proposal would impose a 30 percent capital gains tax on future investment earnings -- for those who have a $2 million net worth or have had an average income tax liability of at least $148,000 in recent years.
In addition, the bill would bar them from ever returning to the United States.

[M-technik-3]

Hmm think a lawyer advised him that he could do this?

I will say good for the fed's but at the same aspect I want to see their sponsors on their back so I know where their slush money is coming from.

[joshh]

Why is this good for the feds?
I don't doubt this really is about taxes but I expect this from a system set in place to punish success.
Is this an example of the US government paying for someone's education and it paying off?

[nrubenstein]

Actually, this is symptomatic of the fact that the US is the only first world country that taxes citizens who live abroad. At this point, if you are serious about living out of the country, you almost *have* to give up your citizenship. It's very expensive for foreign employers to comply with IRS requirements ($5k plus per employee, annually), and many banking institutions are now simply refusing to do business with Americans in order to avoid the IRS proctoscope.

It's bad policy.

[bmwstephen]

well if we cant raise borders to keep people from leaving, we will institute policies that would disincentivize them

[nrubenstein]

well if we cant raise borders to keep people from leaving, we will institute policies that would disincentivize them

We already have by far the highest barriers of any first world country. Making it worse isn't healthy.

Likewise, encouraging American companies to keep their foreign profits out of the country is bad policy as well. People like to bandy about the theoretical cost of a tax holiday, but the cost of having them simply keep all their cash outside is greater.

[joshh]

We already have by far the highest barriers of any first world country. Making it worse isn't healthy.

Likewise, encouraging American companies to keep their foreign profits out of the country is bad policy as well. People like to bandy about the theoretical cost of a tax holiday, but the cost of having them simply keep all their cash outside is greater.

Did you just fucking say that? Who are you?

[MikeDE]

Actually atm, on the US consulate/citizenship infosite for Frankfurt, Germany, it says something to the affect of: renunciation of US citizenship in no way makes you free and clear of your responsibilty of paying taxes/backtaxes/penalties accrued during your time as a US citizen.

[gwb72tii]

you see, it's a tax revenue problem we have in this country, and taxing those bastard millionaires that dare leave this fine country is just fair, haha

[Kershaw]

Actually atm, on the US consulate/citizenship infosite for Frankfurt, Germany, it says something to the affect of: renunciation of US citizenship in no way makes you free and clear of your responsibilty of paying taxes/backtaxes/penalties accrued during your time as a US citizen.

right. and he said he will pay taxes on what he owes.