Of course you are all correct. It's like this: Hey super rich IP dude... you can : a) do nothing and pay a bunch of taxes b) consider some legal citizenship filings and pay a bunch less A rational person wold choose................... Capital is like gravity and will always find it's best use. Politics are a complete diversion. DE, MA Economics 1980
Senators to Unveil the 'Ex-Patriot Act' to Respond to Facebook's Saverin's Tax 'Scheme' - Yahoo! News
That's a good one, both unconstitutional and a violation of international law. It's a long time since the mood in the U.S. has been to give people more freedom to choose, rather than less. This is just one more manifestation of it. It's been a long time since that same law making body declared, in the Expatiation Act, that the freedom to choose one's citizenship was a sacred right. Severin will be taxed according to existing law, and pay plenty: to make people pay even more, or punish them, just because they dared leave the U.S., reminds me of the way the former Soviet Union functioned, in its handing of those who wished to leave.
I love this story. Obviously, Saverin is the 10th man... Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this: The first four men (the poorest) would pay nothing. The fifth would pay $1. The sixth would pay $3. The seventh would pay $7. The eighth would pay $12. The ninth would pay $18.. The tenth man (the richest) would pay $59. So, that's what they decided to do. The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. 'Since you are all such good customers,' he said,'I'm going to reduce the cost of your daily beer by $20. 'Drinks for the ten now cost just $80. The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected. They would still drink for free. But what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his fair share?' They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to drink his beer. So, the bar owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay. And so the fifth man, like the first four, now paid nothing (100% savings) The sixth now paid $2 instead of $3 (33%savings) The seventh now pay $5 instead of $7 (28%savings) The eighth now paid $9 instead of $12 (25% savings) The ninth now paid $14 instead of $18 ( 22% savings) The tenth now paid $49 instead of $59 (16% savings) Each of the six was better off than before. And the first four continued to drink for free. But once outside the restaurant, the men began to compare their savings. I only got a dollar out of the $20, declared the sixth man. He pointed to the tenth man, but he got $10! Yeah, that's right, exclaimed the fifth man. I only saved a dollar, too. It's unfair that he got ten times more Than I That's true! shouted the seventh man. Why should he get $10 back when I got only two? The wealthy get all the breaks! Wait a minute,' yelled the first four men in unison. We didn't get anything at all. The system exploits the poor! The nine men surrounded the tenth and beat him up. The next night the tenth man (the richest) didn't show up for drinks, so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill! And that, boys and girls, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier. David R. Kamerschen, Ph.D.Professor of Economics University of Georgia For those who understand, no explanation is needed. For those who do not understand, no explanation is possible
My, how times change.... Quoting part of the Expatriation Act of 1868: Renouncing one's citizenship is always an act of rebellion, even if it is tax driven- which is, after all, just another objection to the laws, policies or actions (or inaction) of the government. Singapore, one of the most prosperous of countries, and also one with the most highly developed system of social services and support for its citizens, apparently does not find it necessary to tax capital gains. It is also widely considered one of the best places in the world in which to do business. For many, it has become one of the best places to retire, as well.
