Bill Takes Aim at Facebook Co-Founder’s Tax Scheme

Facebook co-founder Eduardo Saverin has renounced his American citizenship in a bid to avoid up to $67 million in taxes on the billions he’s expected to make when the company goes public. Democratic U.S. Sens. Chuck Schumer and Bob Casey have introduced a bill to punish such ex-citizens with heavy taxes and bar them from ever re-entering the United States. —ARK

ABC News:

At a news conference this morning, Sens. Schumer and Bob Casey ... 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.

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Andrew Feinberg (CC BY 2.0)