U.S. Senator Charles Schumer proposed a 30 percent capital gains tax on people such as Facebook co- founder Eduardo Saverin unless they show they didn’t renounce their U.S. citizenship to avoid taxes.
“Eduardo Saverin wants to de-friend the United States of America just to avoid paying taxes,” Schumer, a New York Democrat, told reporters today. “We aren’t going to let him get away with it.”
Schumer’s proposal would empower the Internal Revenue Service to impose a 30 percent capital gains tax on future investment gains of wealthy individuals who the agency decides renounced their citizenship to avoid taxes. It also would bar such people from re-entering the U.S. Schumer said he will advance the legislation “as quickly as possible.”
“This tax-avoidance scheme is outrageous,” Schumer said.
So to summarize: The U.S. Congress made a law. A Harvard grad got rich in an extremely unusual, once-a-generation success story and took advantage of said law to minimize his tax liability. Somehow, that’s an abomination and should be immediately rectified by a new law that grants the IRS the ability to determine an individual’s intent in leaving the U.S. Last year alone, 1,780 people renounced their citizenship. Unless the Service has the Amazing Kreskin on retainer (timely cultural reference!), determining exactly why each taxpayer chose to leave could prove quite the challenge.
The fake outrage is laughable, and the reactionary, “prisoner of the moment” tax proposal even more so.