Thirty year old Eduardo Severin, co-founder of Facebook, has renounced his U.S. citizenship prior to the public sale of Facebook stock, which could raise the value of his holdings in the company many times over. IRS assesses taxes on the value of all property in which the citizen has an interest, including any unrealized capital gains, in the tax year in which the renunciation occurs. To do so before the IPO is complete could save him considerably on taxes. Severin was born in Brazil and is a resident of Singapore, a country that imposes no capital gains taxes. Facebook Co-Founder Saverin Gives Up U.S. Citizenship Before IPO - Bloomberg A person with his wealth can pick and choose which countries he'd like to be affiliated with.
So America welcomed him, he went to Harvard, used the legal system to sue, enjoyed all the rights, and now he's gonna be a multimillionaire he's going to turn his back on the country cause he doesn't want to pay taxes - what a wanker! I mean how much money does one person need - is 10, 20, 50 or 100 million not enough for one 30 year old anymore? Pay your dues! If he hadn't gone to America he most likely wouldn't have been in this situation now. And the top tax bracket is only 39%! It's not like we're in the 50's of Europe! Take all your money and leave the rest of the less fortunate Americans who haven't got millions and don't have the luxury of leaving the country, to continue to pay their taxes. Especially at the moment when tax revenue is of such a high importance!
One of the things that I found interesting in that article is the growing number of US citizens who are giving up their US citizenship. Keep in mind too that unlike most other Countries in the World that the US taxes on total World Wide Income. Think of the hassle of having a Fideicomiso and the reporting that's required... IMO, we will continue to see the number of US citizens giving up their citizenship increase especially if the current Administration isn't booted to the curb and gets its wish to increase taxes on the top 1%. Why should anyone who has worked their butts off or even inherited wealth be forced to basically surrender their money to be redistributed to the growing 49% who pay NOTHING and rely on the Government to sustain them??? Sad and sick, IMO.
HIS SHARE of the IPO could be worth nearly $4 billion. Harvard taught him well. One could argue that the point of this maneuver is due to high capital gains taxes, while Singapore has none. Too bad if he takes his capital there instead of leaving it here and creating more jobs with US investments. Big multinational companies have been doing things like this for years, yet Obama and his Socialist leanings want more and more taxes, dressed often in sheep's clothing. Adios jobs.
Remember people complaining about the 1 percent? That will not be the issue when they all denounce their citizenship and stop paying any tax at all, or take their businesses outside the US. What will the other 99 percent do then? Who will they pick to complain about? Yep, the Democrats have found a way to screw the people again.
If I understand how this works, T.J., he'll still be able to invest in the U.S., under the same conditions citizens of other countries can do (there are few restrictions), he will just no longer be subject to U.S. taxes- after he satisfies his one, last, and very large tax bill for unrealized capital gains on assets in which he had an interest at the time of his renunciation. As for obtaining a citizenship of one's choice, there may be no countries that will not grant citizenship to people who invest substantial sums. The U.S., for example, will put you on a path to citizenship if you show the ability and willingness to invest one million USD and create a business which employs at least eight people. Ever wonder why so many Indians operate older and perhaps slightly moldy motels in the U.S.? It's just one of the more obvious ways to achieve this goal. It's not even required that you have the one million, as I understand it, just that you invest that much, a part of which can be borrowed.
Now it makes sense. The Indians found the loophole and ae filling the US with their families. And I am willing to bet all the money is borrowed. Hate to say we have stupid laws with too many loopholes.
From this article: "The move sparked an outcry among some tax experts who suspect he’s aiming to save on taxes." Well DUH ! ! ! What would the so called "tax experts" suggest he do? Are they making a case against tax savings advice? Or what do some "tax experts" do for a living?
