U.S. Sen. Chuck Schumer wants to stop a soon-to-be very wealthy Facebook co-founder from avoiding taxes by renouncing his citizenship.
Eduardo Saverin was born in Brazil, but moved to the United States and gained citizenship here. He now lives in Singapore.
In September 2011, Mr. Saverin, who helped create the social networking giant, began the process of renouncing his citizenship. If he doesn't have to pay taxes on the billions of dollars he's expected to earn with Facebook's upcoming initial public offering, he'd save $67 million on his U.S. tax bill, according to Mr. Schumer's office.
“It's infuriating to see someone sell out the country that welcomed him and kept him safe, educated him and helped him become a billionaire," Mr. Schumer said in a news release. "This is a great American success story gone horribly wrong. We plan to put a stop to this tax avoidance scheme. There should be no financial gain from renouncing your country.”
Mr. Schumer announced legislation legislation today with Sen. Bob Casey that would punish those who renounce their citizenship for tax evasion purposes. Cleverly dubbed the Ex-PATRIOT Act, it would prospectively tax capital gains earnings 30 percent for the renouncers.
It would also bar them from ever entering the United States again.