Schumer's Berlin Wall

Facebook co-founder Eduardo Saverin's decision to renounce his U.S. citizenship came just prior to that company's announcement of its initial public offering.  With that move he can escape the minimum 15% capital gains tax in the United States.  Saverin can take his expected $67 million in savings to Singapore where he now resides since it has no capital gains taxes.Saverin's tax avoidance strategy has raised the dander of Democratic Senator Chuck Schumer.  He fumed "Mr. Saverin says he's a global citizen, but it just so happens that the country where he has chosen to reside has no capital gain tax. This tax avoidance scheme is outrageous." Two Democratic senators proposed their "Ex-Patriot Act" in the Senate.  In an effort to discourage the exodus of the wealthy, this legislation by Sen. Chuck Schumer and Sen. Bob Casey will require "high-earning" Americans who renounce their American citizenship to pay a heavy capital gains tax.  "High-earners" according to...(Read Full Post)