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Schumer Introduces Ex-PATRIOT Act: Will Banish Those Who Renounce US Citizenship
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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A better option is to just introduce Tax Decuction at source. And make rules that all income in US even by foreigners is subject to tax.
Ignore the claims that this will reduce investment. People invest for returns not for "no taxes"
"If an American wishes to separate himself from this country and its people, he is taking a step of deep significance. He should not be able to easily return and brag to his friends about the billions he is making by evading civic responsibilities." Yale Law professor Bruce Ackerman
Yes, you can tell he's law and not economics. I much prefer, "If an American wishes to separate himself from this country and its people, we must REALLY be pissing off our customers. Maybe we should try not being such assholes."
Yale Law professors are very much part of the problem in this country!!! Absolutely unbelieveable!
This is a classic Chucky publicity stunt. In the communist USSR, which he still considers was Utopia (provided he was in charge), dissidents who wanted to emmigrate were required to donate all of their assets to the state prior to submiiting an apllication for permission to emmigrate.
Once again Chucky illustrates his complete igorance of economics. Even if the amount of taxes avoided was $67 million every year (instead of a one shot deal), it would take 15 years to collect each billion dollars. Since the Federal Government spends $11 billion a day, They would spend the $67 million in less than 10 minutes. To put things in perspective, $67 million is the amount of money the US Government spends in the time it takes Chuck Schumer to take a shit!
Economic berlin wall. That will be good for investors.
So M. Shumer is proposing to make borders into fences to keep people in.
How amusing. Coming from someone with Russian and Polish jewsish ancestors, he would know everything about fences, or ghettoes, as they were. Maybe he has forgotten.
Its illegal to renounce US citizenship....
....cause they need/want your tax $$$s....
Somehow I dont think it will be a problem for renuncients if they cannot return
Oh, Jesus how I hate window dressing for the benefit of the "little people". Anyone not completely financially ignorant would convert to cash while an American, buy gold OTC and deposit in an allocated account overseas, THEN emigrate. Voila, zero trackable assets. Congrats, stupid government. You've just given all the people who want to emigrate a perfect excuse to buy all the gold you're selling into the market to keep people from noticing the dollar is failing.
This is all politics.
INA sec. 212(a)(10) is already on the books. It authorizes CBP officers at any port of entry to exclude from admission into the USA anyone who renounces USA citizenship in order to avoid taxes. And, it's for life.
I believe Eduardo Saverin became a citizen of Brazil not Singapore. He has aquired permanent residency in Singapore, but that is not the same thing as citizenship. In any case, I hope Mr. Saverin is aware that a permanent resident in Singapore is obligated to perform two years public service or to serve in the military and may not leave the country without a tax clearance, But he is a big boy and knows what he is doing so good luck to him.