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).
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...