Senators To Unveil the 'Ex-Patriot Act' To Respond To Facebook's Saverin 716
Posted
by
timothy
from the why-schumer-is-my-least-favorite-congresscritter dept.
from the why-schumer-is-my-least-favorite-congresscritter dept.
An anonymous reader writes "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." See this earlier story on Saverin's plan to make the leap out of the U.S. tax system.
Re:Why is the solution to every problem (Score:5, Interesting)
There's a reason why Texas' legislature only meets every other year (excepting emergency sessions)
Re:Not Just Saverin (Score:5, Interesting)
Re:Not Just Saverin (Score:5, Interesting)
The easiest way for a corporation to avoid corporate income taxes is to "increase its costs" - that is, hire more people, raise salaries, and generally do all the things a good citizen of a corporation should do.
Corporate income taxes aren't like personal income taxes. The biggest "loopholes" aren't really bad things.
it's envy (Score:4, Interesting)
I think they're pissed off because it's the most uncomplicated way (and fully legal) of avoiding taxes. You don't even need to hire expensive lawyers or anything, like many of them senators probably have, in order to evade taxes. It's ENVY!
Re:Why is the solution to every problem (Score:4, Interesting)
Texas is far less oppressive compared to more liberal states.
I hope he gets away with it (Score:5, Interesting)
Not that I sympathize with this slimy tax-dodger, but I hope he gets away with it.
The value of his demonstration on how the rich view the world is worth more to the world (and the American public) than the taxes he owes. I don't want that demonstration stopped.
Re:I understand, but... (Score:3, Interesting)
Yes they are, if you have ever dealt with the IRS as a expat, or tried to setup banking in another country with the US as your nationality you would do exactly the same thing. No bank wants to deal with you, the IRS requires immense amounts of info on every single account you hold and the fines for making a mistake as unbelievable.
If you don;t plan on returning its actually a decent way out of the IRS system.
A sneaky way to put Halliburton in jail... (Score:5, Interesting)
Back in 2007, Halliburton was making so much money off no-bid war-related contracts, it moved headquarters out of America in order to avoid paying taxes on all the money it was making from the US government. [go.com]
Very clever Mr. Schumer!
Re:I understand, but... (Score:4, Interesting)
If a guy leaves because he has to pay $67 million after earning $4 billion then he doesn't deserve citizenship.
It was the 'system' who allowed him to earn that money in the first place.
Re:Not Just Saverin (Score:5, Interesting)
My very Republican, very stalwart conservative father in law went on an unexpected rant last weekend, regarding day traders of all things. He feels that taxes on stocks kept less than 24 hours should be 90% of profits, dropping to 50% after a week, and then back down to standard capital gains after one year. I'd never thought I'd hear such words fall from his lips, but then again he is a player in the long game of the stock markets.
Re:I understand, but... (Score:3, Interesting)
What do you think allowed Facebook to incorporate in the first place? What do you think allows them to issue stock? What do you think allows private individuals to own property (such as stock)?
Finally, they are not threatening to end his citizenship, HE RENOUNCED IT.
Are you really that stupid?
Why is this a big deal at all? (Score:4, Interesting)
The government is effectively paying him $67M to take $4B and invest it in Singapore instead of the US.
More power to him, so long as the government is insisting on getting paid AMT or capital gains now on unrealized income from an appreciated investment which hasn't been sold.
The problem is that they want their poind of flesh now, rather than waiting for it to turn from an investment into "mall money" (money you can take down to the mall and spend).
I knew, though not well, a Netscape guy who was a paper multimillionaire when the Netscape IPO happened. In order to make it a long instead of a short term capital gain, and thus pay less tax, he did an exercise and hold, rather than a same day sale. Then the .bomb happened and the stock price tanked. So there he was with a couple hundred thousand in share value, and the government wanted their 35% of the $27M they valued it at at the time the options were exercised.
Eventually he killed himself, rather than going to Federal (debtor's) prison for tax evasion, since you can't dismiss taxes owed through bankruptcy.
Capital gains taxes as a matter of public policy are potentially defensible, even though they make you pay taxes on an investment of after-tax income and therefore amount to a surtax, but AMT is just asinine: the government can wait to get its money until I get my money.
-- Terry
Re:Sour Grapes (Score:4, Interesting)
someone wanting to renounce their citizenship- and hence the protection and rights offered by the US constitution
The protection and rights offered by the US Constitution apply to all people in US jurisdiction, not just citizens, except where otherwise specified. E.g I'm not a citizen, just a resident; but the courts have ruled that my First and even Second Amendment rights are protected just as much as yours. There's a reason why it says "The right of People"...
Re:So like the Soviet Union? (Score:4, Interesting)
Do you really think the solution to "rich people want to leave for somewhere more friendly" is "lets go after these guys"?