Sens. Chuck Schumer and Bob Casey announced the Ex-PATRIOT Act this morning. The legislation is intended to counter a tax avoidance scheme where U.S. citizens renounce their citizenship to avoid paying certain taxes. For most of us, this type of tax avoidance is not an option, but for the very wealthy, it can be financially rewarding. Case in point is Facebook gazillionaire, Eduardo Saverin’s decision to renounce his U.S. citizenship and repatriate to Singapore.
The senators call Saverin’s move to renounce his citizenship last year “an outrage” and a “scheme” designed to skip out on the IRS — especially in light of the big payday he’ll get in Friday’s expected Facebook IPO.
Their plan would also bar expats like Saverin from ever re-entering the U.S.
The senators proposed the “Ex-PATRIOT” Act — which stands for “Expatriation Prevention by Abolishing Tax-Related Incentives for Offshore Tenancy” — in response to Saverin’s move, which they say will “help him duck up to $67 million in taxes.” – Politico.com
This whole episode spurred something in my memory banks from a comment offered up by one of the GOP hopefuls in a debate.
Now who was that? And what was it in reference to?
Ron Paul warned us about this very thing….