Facebook Co-Founder Saverin Gives Up U.S. Citizenship Before IPO – Bloomberg


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Amazingly enough, I wrote about this last week! Rather than pay an amazing $575 million in taxes on his IPO, Saverin, billionaire co-founder of Facebook is renouncing his US citizenship to avoid the tax bite.

This is just one way that the very wealthy exercise tax avoidance. So Obama’s unceasing desire to increase taxes on this group will be met with tax avoidance. People don’t become very wealthy by not understanding or having advisors that understand tax code and proper legal avoidance of taxes. Money will be off shored and businesses will outsource labor and production. What ever must be done will be done to avoid paying higher taxes.

Relevant Links:

Two comparisons of tax rates:

http://www.theasi.org/assets/EY_ASI_Dividend_and_Capital_Gains_International_Comparison_Report_2012-02-03.pdf

http://accf.org/news/publication/an-international-comparison-of-capital-gains-tax-rates

The story goes viral on Twitter today:

http://twitchy.com/2012/05/11/taxed-out-facebook-co-founder-does-not-give-a-like-to-u-s-tax-policy-renounces-citizenship/

This trend has been going on for a while as the rich flee the increasing  US tax burden:

Stacy

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  1. Margaret 12 May, 2012 at 01:22 Reply

    Wht incentive does he have to keep his money here? What incentive does he have to invest his money to create jobs here? The threat of taxing it at 75 to 90 % is enough to dis-incentivize anyone. Job creation? Not while this administration is in the WH with GM, Energy and Healthcare being nationalized, and the NRLB telling companies like Boeing where they can create jobs. If we get new folks in the WH, maybe the money spigot will start flowing into jobs again. It certainly won’t if nothing changes.

  2. Stacy on the Right 12 May, 2012 at 01:25 Reply

    As usual Margaret you sum things up with laser accuracy. We require new leadership at many levels, but the Presidency is of utmost importance right now… Winning back the Senate is of serious import as well.

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