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Schumer Introduces Ex-PATRIOT Act: Will Banish Those Who Renounce US Citizenship

Tyler Durden's picture




 

What comes after Banana Republic? Because America is it - after last week Facebook co-founder, and native Brazilian, Eduardo Saverin announced he would denounce his US citizenship, America has decided to make it virtually illegal to denounce one's citizenship in what can only be classified as the dumbest proposed law in recent history: meet the Ex-PATRIOT Act (Expatriation Prevention by Abolishing Tax-Related Incentives for Offshore Tenancy) proposed by Chick Schumer and Bob Casey. One wonders just how much taxpayer money was spent to pay naming consultants to come up with this witty acronym for a law that can only be classified as utter idiocy. Here is our suggestion for the follow up law: The "GULAG" Act: Get Ur Laughable Asses Gone (although we are open to any other non-taxpayer funded acronym suggestions).

From ABC:

Sen. Chuck Schumer, D-N.Y., has a status update for Facebook co-founder Eduardo Saverin: Stop attempting to dodge your taxes by renouncing your U.S. citizenship or never come to back to the U.S. again.

 

In September 2011, Saverin relinquished his U.S. citizenship before the company announced its planned initial public offering of stock, which will debut this week. The move was likely a financial one, as he owns an estimated 4 percent of Facebook and stands to make $4 billion when the company goes public. Saverin would reap the benefit of tax savings by becoming a permanent resident of Singapore, which levies no capital gains taxes.

 

At a news conference this morning, Sens. Schumer and Bob Casey, D-Pa., will unveil the "Ex-PATRIOT" - "Expatriation Prevention by Abolishing Tax-Related Incentives for Offshore Tenancy" - Act to respond directly to Saverin's move, which they dub a "scheme" that would "help him duck up to $67 million in taxes."

 

The senators will call Saverin's move an "outrage" and will outline their plan to re-impose taxes on expatriates like Saverin even after they flee the United States and take up residence in a foreign country. Their proposal would also impose a mandatory 30 percent tax on the capital gains of anybody who renounces their U.S. citizenship.

 

The plan would bar individuals like Saverin from ever reentering the United States again.

 

"Eduardo recently found it more practical to become a resident of Singapore since he plans to live there for an indefinite period of time," Tom Goodman, Saverin's spokesman, told Bloomberg News in an email.

 

Last year 1,700 people renounced their U.S. citizenship.

So going forward everyone who no longer wants a US passport will have to check a box:

  • Are you no longer a US citizen for tax purposes: Yes / No.

And to think there are those who inexplicably say America's elected officials are idiots, and central planning is sure to fail...

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Thu, 05/17/2012 - 09:18 | 2434840 Aziz
Aziz's picture

Hahahahahahahahaha

Thu, 05/17/2012 - 09:23 | 2434868 quintago
quintago's picture

There already is a law saying that if your net worth is greater than 2M and you renounce....you will still owe the US on your worldwide income for the next 10 years.

It's an obscure law, but nobody seems to be talking about it.

Thu, 05/17/2012 - 09:25 | 2434889 GetZeeGold
GetZeeGold's picture

 

 

Sen. Chuck Schumer: You WILL eat this crap I'm forcing down your throat.

 

Thu, 05/17/2012 - 09:31 | 2434914 SilverTree
SilverTree's picture

I am familiar with the fact that I will never escape. Although I will fight to the death for what is mine.

Thu, 05/17/2012 - 09:33 | 2434943 bdc63
bdc63's picture

You know, I think the state of California needs to pass a similar law ... if you try to escape, you still owe your share of the debt that was racked up while you lived here.

Indentured servitude is SO underrated ...

Thu, 05/17/2012 - 09:36 | 2434961 Manthong
Manthong's picture

LOL.. +1 on GULAG

Thu, 05/17/2012 - 10:03 | 2435134 Think for yourself
Think for yourself's picture

The vampire squid is flexing its tentacles...

Thu, 05/17/2012 - 10:12 | 2435191 Surly Bear
Surly Bear's picture

I am old enough to recall the Iron Curtain, and wise enough to know it was to keep people in rather than keeping us out.

Thu, 05/17/2012 - 13:11 | 2435929 The Big Ching-aso
The Big Ching-aso's picture

 

 

Being a patriot these days can be quite scoundrelous.

Thu, 05/17/2012 - 14:01 | 2436364 A Nanny Moose
A Nanny Moose's picture

Yet again, Ron Paul was right.

http://www.youtube.com/watch?v=esp-ruhkZqQ

This time it will be different.

Thu, 05/17/2012 - 14:02 | 2436369 BooMushroom
BooMushroom's picture

So when they finally get around to building the fence along our southern border, the barbed wire on the top will face IN?

Thu, 05/17/2012 - 09:44 | 2435013 krispkritter
krispkritter's picture

Cali aggressively pursues former residents(I think that was covered here not too long ago) but they don't always win.

Note the penalties CA tried to impose, including $10mil for NOT using it's amnesty program.

http://www.hgexperts.com/article.asp?id=5410

Thu, 05/17/2012 - 14:23 | 2436489 Ident 7777 economy
Ident 7777 economy's picture

 

 

krispkritter :

"Cali aggressively pursues former residents ..."

 

So does NY state ...

 

 

Thu, 05/17/2012 - 09:48 | 2435042 sethstorm
sethstorm's picture

Thought the courts struck that measure down in that state.

Thu, 05/17/2012 - 10:02 | 2435127 CH1
CH1's picture

I think the state of California needs to pass a similar law ...

Translation:

Sure it's a Gulag, but it's OUR Gulag!

Thu, 05/17/2012 - 12:51 | 2436052 Bananamerican
Bananamerican's picture

the next time somebody uses the word 'appropriate" in your presence

slap them in the face as hard as you can

Thu, 05/17/2012 - 10:58 | 2435513 ElvisDog
ElvisDog's picture

I got news for you, CA already does something like this law. If you have lived in CA in the past 10 years or did business in CA of any kind, you might just get a tax bill from them. There was a story a few weeks ago about a guy who moved away from CA years ago and got a tax bill. Not only that, but CA got his bank (Wells Fargo I believe) to remove the tax bill amount from his checking account proactively.

Thu, 05/17/2012 - 10:59 | 2435526 Freddie
Freddie's picture

The Repubs suck but the Democrats are pure evil.

Thu, 05/17/2012 - 11:08 | 2435583 TheFourthStooge-ing
TheFourthStooge-ing's picture

Still a captive of the two-party myth, I see.

 

Thu, 05/17/2012 - 14:25 | 2436501 Ident 7777 economy
Ident 7777 economy's picture

 

 

 

Still believing there are myths?

 

(IOW: You're not reality-based.)

 

 

Thu, 05/17/2012 - 11:48 | 2435755 Rasna
Rasna's picture

It still amazes me that there are people who think that the party system and elections mean anything around here.  Bush 1 paved the road ro NAFTA, "Free Trade" agreements and perpetual wars in the Middle East.  Clinton (member of the CFR and Bilderbergers) solidified all of that and got rid of Glass-Stegal.  Bush II looke the other way on the 911 attacks (although "conspiracy theorists" would say that he knew in advance) which gave us the Patriot Act, and sent the Constitution over to the shredder, lied us into wars in the Middle East that robbed us of our treasure - people and money that went to the military idustrial complex and other corrupt officials (there are $Billions that are still unaccounted for, although there are rumors that Jon Corzine was overseeing those programs /sarc off)and gave us TARP.  Obama is Bush II.  Has sent $Trillions to Wall Street and the Banks, plays golf with Jamie, has extended the Patriot Act with the NDAA and thinks it's OK to kill American citizens because he says so.  The 2 party system is a "bright shiny object" for the 99.5% to distract them...

No one gets within sniffing distance of the White House usless the Financial Elite give their blessing.  All of politics is about keeping the unwashed 99.5% distracted. Read you history with a more unbiased eye.

Thu, 05/17/2012 - 13:10 | 2435962 The Big Ching-aso
The Big Ching-aso's picture

 

 

Maybe the safest bet these days is avoid getting wealthy so you don't become poor.

 

 

 

Thu, 05/17/2012 - 13:19 | 2436187 Rick Masters
Rick Masters's picture

Yes, THAT is the answer. I propose that you right now quit your job and gibve away all your money to avoid the fate of the poor, poor people who become rich. The horror, the horror.

Thu, 05/17/2012 - 21:45 | 2438125 The Big Ching-aso
The Big Ching-aso's picture

 

 

I was sarcastically intoning about getting taxed to poverty for being wealthy you boobus maximus.

Thu, 05/17/2012 - 09:30 | 2434918 TheTmfreak
TheTmfreak's picture

Atlas Shrugged no?

Thu, 05/17/2012 - 10:24 | 2435277 Cruel Aid
Cruel Aid's picture

No Doubt

Thu, 05/17/2012 - 13:50 | 2436322 Raymond K Hessel
Raymond K Hessel's picture

Eduardo Saverin = Francisco d'Anconia

Thu, 05/17/2012 - 09:49 | 2435053 Karl von Bahnhof
Karl von Bahnhof's picture

Ex-Party Riot

Thu, 05/17/2012 - 10:02 | 2435128 jez
jez's picture

This is Farmer Schumer mending the fences on the edge of his land. See, a few of his cows have been getting through the fences and escaping recently, and when that happens, it means he can't milk them any more.

 

And old Chucky likes to milk his cows real hard.

Thu, 05/17/2012 - 11:52 | 2435806 The Alarmist
The Alarmist's picture

He strikes me as the kind of guy who sends an Air Force drone to support the SWAT team that he has demanded be sent to get his cows back, even though it is his fault they strayed from the farm.

Thu, 05/17/2012 - 11:53 | 2435811 anarchitect
anarchitect's picture

Schumer is probably the biggest asshole in the Senate, although Levin is serious competition. They see taxpayers more like beef cows but realize it isn't yet sufficiently politically correct.

Thu, 05/17/2012 - 12:22 | 2435909 Psyman
Psyman's picture

Schumer (this shit, among others).

Levin.

Lieberman (DHS architect).

 

Do I sense a theme here?

 

Coming soon...All Hail President Goldsmithgoyimbasher!

Thu, 05/17/2012 - 14:33 | 2436547 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

I think this is a fine idea. Now they need to send the same notices to Apple, GE, Microsoft, and all the others who effectively have renounced their citizenship by avoiding US taxes. Citizens United should cut both ways, bitchez

Thu, 05/17/2012 - 09:55 | 2435098 5880
5880's picture

I thought it was "they have the right" to go after income? But don't have to. This is a cap gain issue anyway

If you've lived here a long time, giving up SS and Medicare is a huge hit. If you look at the NPV of it, going full ex pat is a hard choice if have less than 4B

Thu, 05/17/2012 - 10:02 | 2435126 WillyGroper
WillyGroper's picture

>>If you've lived here a long time, giving up SS and Medicare is a huge hit.

 

Like there will be anything left. It's gutted.

Thu, 05/17/2012 - 10:25 | 2435286 etresoi
etresoi's picture

What is the NPV of an account with a negative balance?  The USA is bankrupt.  Get out, while it is possible.

Medicare is a disaster compared to the medical <care available in many other countries. 

Thu, 05/17/2012 - 13:51 | 2436326 Raymond K Hessel
Raymond K Hessel's picture

Zero

Thu, 05/17/2012 - 09:57 | 2435107 Catch-22
Catch-22's picture

Actually (I've mention this before) 

If you have some money/assets (2 million is the threshold) YOU HAVE TO LEAVE 30% of everything you OWN NOW (think death tax), at the door before leaving.

Thu, 05/17/2012 - 10:08 | 2435159 RoadKill
RoadKill's picture

NOT TRUE

All you have to do is pay a one time mark to market on all assets held worldwide. Of course if you ever invest in the US thereafter you still pay US taxes on your income and cap gains.

Thats my biggest problem with leaving. If I keep buying US stocks then I dont really gain anything.

Thu, 05/17/2012 - 10:29 | 2435313 etresoi
etresoi's picture

.. and the USA, Russia under Stalin and Nazi Germany are the only counties in history to have such exit policies.

 

I renounced several years ago and believe me it is very easy to stay away from US investments and USA territory.

Thu, 05/17/2012 - 10:34 | 2435349 Catch-22
Catch-22's picture

Oh, I’m sorry, is that all?

 

One time mark to market on all assets held worldwide… let me write them a check out of petty cash… no big deal.

 

Thu, 05/17/2012 - 14:08 | 2436396 Polonius
Polonius's picture

NOT TRUE

Once you expatriate there is no capital gain tax but you do have to pay a 30% withholding tax on dividends and interest.

This proposed law is repugnant.  Income tax is unconstitutional.  Look it up.

Americans really have no idea how their country has become the model of fascism they purportedly fought against in WW2.

Thu, 05/17/2012 - 10:26 | 2435299 xPat
xPat's picture

There already is a law saying that if your net worth is greater than 2M and you renounce....you will still owe the US on your worldwide income for the next 10 years.

It's an obscure law, but nobody seems to be talking about it.

The most likely reason that nobody is (still) talking about it is that it was repealed in June, 2008.

xPat

Thu, 05/17/2012 - 11:57 | 2435823 The Alarmist
The Alarmist's picture

I think you need to re-read 26 USC §877.

Thu, 05/17/2012 - 11:46 | 2435777 anarchitect
anarchitect's picture

Incorrect. If your net worth is over 2M, you pretend to sell all your assets on the day you lose citizenship. If you have over $600K of capital gains, you pay capital gains tax on the difference. If you have an IRA, you pay income tax on the entire balance but cannot withdraw it (unless you are 59 1/2) without paying the additional 10% early withdrawal penalty. After that, you don't do business with the IRS again unless you have US source income.

Thu, 05/17/2012 - 09:23 | 2434870 blumarlin1
blumarlin1's picture

R - Restrict
A - American
P - People
E - Escaping

Thu, 05/17/2012 - 09:33 | 2434937 NotApplicable
NotApplicable's picture

Protecting Revenue Interests Strangling Our Nation

Thu, 05/17/2012 - 10:17 | 2435228 Sancho Ponzi
Sancho Ponzi's picture

Here's a comment from a Reuters post:

'Unless I’ve totally misunderstood every history book that has passed through my hands, dumping citizenship for tax reasons is exactly how America started.'

Thu, 05/17/2012 - 11:10 | 2435596 TheFourthStooge-ing
TheFourthStooge-ing's picture

Only terrists read history.

 

Thu, 05/17/2012 - 12:25 | 2435925 Psyman
Psyman's picture

America - Reading is for faggots.

 

http://mybfolder.org/albums/_USAvsEUROPE/1202898414492.jpg

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