Just In Time For A Facebook IPO Tax Break, Eduardo Saverin Renounces U.S. Citizenship

TechCrunch:

Well that’s some slick timing. Eduardo Saverin, who is best known for co-founding Facebook with Mark Zuckerberg back in their college days at Harvard, has given up his United States citizenship.

Read the whole story: TechCrunch

Comments

[DJW39]

12:30 PM on 05/17/2012

Bottom line its greed, plain and simple....even if he did pay taxes, he'd still be a gazillionaire. Never enough for some people eh....HOWEVER, he's perfectly within his rights to do so. The sour grapes coming from the US Government are exactly that - unlucky, US Govt, you lose this time, fair and square. Making legislation to "trap" people - disgustingly unconstitutional.

Personally, I'd value a citizenship, especially a US one, as a higher prize than any money....but that's just me; if Saverin thinks differently, he's not breaking any law by doing what he's doing, as underhand as it is.

[Dameocrat]

09:25 PM on 05/15/2012

We should tax land value not income. That will fix international jerks!

[Christopher Sadler]

06:51 PM on 05/13/2012

What if there was no more Facebook? What then? http://www.youtube.com/watch?v=kU1Yu3slPR4

[Dahveed1]

04:42 PM on 05/13/2012

Is this any surprise? The world is more of an open place. The wealthy have many options of where to live. The rhetoric here about eating our rich is enough to make many of the worldly wealthy head for greener pastures. Mr. Saverin was already living in Singapore, so giving up his US citizenship wasn't a big deal, other than saving him some serious taxes each year.

This is why the number of people renouncing their US citizenship each year is 10 times higher now than in the year 2000.

First the libs drove businesses away from our shores, now they're driving the wealthy. Of course, the know they're not moving to Greece, France or any of the new socialist governments.

[reinenVernunft]

06:20 PM on 05/11/2012

Our society has become an open sewer, which explains why this individual and his ilk can move so fluidly and easily within it. This type of scoria poisons the cultural well, then goes on to poison it somewhere else. No wonder he and his type are becoming increasingly unwelcome throughout the world- first in pimpery, usury, fraud, and treachery.
We have become a nation where our attachment to baubles and easy cash have lost us all sense of integrity, empathy, honor, and true patriotism. These have been replaced in pride of place by avarice, ambition and greed.

[democratsaint]

04:41 PM on 05/11/2012

has he left the country yet?round him up like any illegal.

[Dahveed1]

04:43 PM on 05/13/2012

He lives in Singapore. I'm sure he'd have little troubling getting a visa to visit here if he so desired.

[mapleaforever]

04:21 PM on 05/11/2012

Well, if ya gotta go, ya gotta go.

[aerynsun2221]

04:09 PM on 05/11/2012

I don't think people realize how difficult it is to comply w/the US tax code and IRS when trying to do the right thing and pay taxes as a US citizen living overseas. Average people are having trouble complying because it's extremely challenging. Honestly, he's just making a shrewd move on his part to limit his tax liability. I congratulate him for taking a risk on a start-up that paid off big for him. What's great about this country is the opportunity that anyone can start a business, produce a product, or leverage their intelligence and talent to get ahead in life. What other country in the world innovates like we do? You'd never get get an iPhone and Steve Jobs discovered out of France or Greece? Or Facebook and Mark Zuckerburg coming out of Russia or China?

[mapleaforever]

04:22 PM on 05/11/2012

True, the lunacy of having to file a 1040 every year, while out of the country, is no fun.

[ezer]

04:34 PM on 05/14/2012

It is much more than a 1040 since FATCA.

[TheyCallMeLtKelso]

04:52 PM on 05/11/2012

Oh, poor them.

It's sooooooooo difficult to hire someone to do your taxes.

Poor, poor rich people. There are no accountants left in the world.

[Dahveed1]

04:46 PM on 05/13/2012

Do you want to pay taxes on your money twice? Neither did Mr. Saverin.

[unpaidpundit]

04:05 PM on 05/11/2012

If another country will have Eduardo Saverin, then let him go. If Saverin ever gets in any legal troubles (legitimate or not) during his globe trotting, at least the U.S. State Department won't feel obligated to help him out.

[Captai]

04:12 PM on 05/11/2012

LOL, they never have!

[Dahveed1]

04:47 PM on 05/13/2012

True dat! Now Mr. Obama's uncle from Africa - he gets all the free help he needs.

[DarkReaction]

04:04 PM on 05/11/2012

He still has to pay some taxes but he renounced U.S. citizenship for the money,
From The Hitchhiker's Guide to National Affairs:

"Although Saverin is renouncing his citizenship, he still has to pay an exit tax. Saverin will still have to pay taxes on the capital gains from the stock holdings. He will have to pay taxes on all and even the shares that are not sold will be treated as if they are, there is no escaping the IRS.

Although Saverin will be paying a pretty penny in exit taxes, he will be saving a lot of money by renouncing his citizenship and his investments in foreign companies will only mean more money for the now 30 year old billionaire."

[ProudNeoCon]

04:02 PM on 05/11/2012

US is one of the very few countries which taxes word wide income. Why should the person who was born in Brazil and have not lived in US for a long time, pay US taxes?

[DarkReaction]

04:07 PM on 05/11/2012

Because it's the law?

[ProudNeoCon]

04:16 PM on 05/11/2012

you are correct. And now he is LEGALLY avoiding doing so...

[kharrast]

04:40 PM on 05/11/2012

If the money is made in the US it should be taxed regardless of where the owner lives.

[ProudNeoCon]

05:10 PM on 05/11/2012

how do you define "money is made in the US"? For salary it is easy. For ownership of the stock/company it is less simple?

[Endora9]

05:51 PM on 05/11/2012

You're absolutely right. He used the benefits and opportunities of U.S. citizenship in making this money, he ought to be properly taxed, as well.

[Republican crybabies]

03:59 PM on 05/11/2012

People need to disabuse themselves of the notion that the one percent is loyal to any one country. Unlike the rest of us, they can hop around the globe to wherever best suits them. They are best viewed as opportunists, not willing partners in the economy.

[Captai]

04:03 PM on 05/11/2012

I'm not rich. I renounced. I live much better in a much better place. You can too.

[jt1980]

04:07 PM on 05/11/2012

While I agree that some of the 1% (and in other classes too) are no more than mercenaries, I think that many among the 1% are decent, moral people too (Bill Gates for his charitable causes for example.)

[kharrast]

04:35 PM on 05/11/2012

While Bill Gates charities have done good things for people they are primarily tax shelters allowing him to transfer assets to his parents, his family, and his friends who run the charities while Gates receives tax breaks for doing so. In affect we the people are subsidizing his actual charity work. Great job you and me we are very kind.

Chase lost tthree billion dollars in a crazy CDS deal after taxes they say it will actually cost them 800 million. So, it is the USA who lost the 2.2 billion. But let's not regulate the banks. After all they have our best interests at heart.

[badger2196]

03:59 PM on 05/11/2012

I don't begrudge rich people their money if they, like Bill Gates, do good things with it. Personally, I started out with nothing and I still have most of it left.

[latia65]

04:03 PM on 05/11/2012

LOL

[Captai]

04:04 PM on 05/11/2012

Good things? Like giving a speech for the last several years the title of which is: 'Population Reduction Through Vaccination'. That sound good to you?

[badger2196]

04:11 PM on 05/11/2012

Population reduction does sound good to me, yes

[mslindab]

03:54 PM on 05/11/2012

Sensationalist yellow journalism headline. C'mon HuffPo

[Chuck Stazo]

03:54 PM on 05/11/2012

Tax everyone at the same percentage and this all goes away.

[jt1980]

03:56 PM on 05/11/2012

Not true. The rich can always find a country where the tax rate is lower.

[Captai]

03:58 PM on 05/11/2012

They always try to slip that in though.

[kharrast]

03:57 PM on 05/11/2012

Capital gains are already taxed at the lowest rate. Also he is moving to a country that does not tax capital gains. So, tell me how taxing everyone the same rate would change this guys mind?

[Chuck Stazo]

04:01 PM on 05/11/2012

Capital gains maybe, but income tax certainly not.

[AveragePlayer]

04:15 PM on 05/11/2012

There are proposals to reduce long term capital gains rates here to 0%. At least then the money would stay in the US and be reinvested, rather than fleeing for greener pastures.