WASHINGTON (CBSDC) – Facebook co-founder Eduardo Saverin’s renouncement of his U.S. citizenship has caused two Democrat senators to introduce a plan that would bar people who evade paying taxes, such as Saverin, from reentering the U.S.
A comprehensive plan from Sens. Chuck Schumer, D-N.Y., and Bob Casey, D-Pa., will be laid out this morning to address individuals who abandon their U.S. citizenship in attempts to avoid taxation on profits expected to be made on public companies, according to media reports.
In September, Saverin renounced his citizenship, causing many to speculate he did so to avoid paying as much as $67 million taxes on the profits he is expected to make once Facebook, the social-networking giant, goes public. Since 2009, the Facebook co-founder has lived in Singapore, which has no capital gains tax.
“The senators will call Saverin’s move an outrage and describe a plan to re-impose taxes on expatriates like Saverin even after they flee the United States and take up residence in a foreign country,” according to a release obtained by Talking Points Memo. “Their plan would also bar individuals like Saverin from reentering the country.”
Saverin’s spokesman, Tom Goodman, has refuted the claim that the taxation was the catalyst behind Saverin’s renouncement of his U.S. citizenship, telling Bloomberg that “the calculations and assumptions are not only erroneous, they also further perpetuate the false impression that tax was the reason behind Eduardo’s decision.”