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Rogerdodger
FACEBOOK CO-FOUNDER GIVES UP U.S. CITIZENSHIP BEFORE IPO

Eduardo Saverin, the billionaire co- founder of Facebook Inc. (FB), renounced his U.S. citizenship before an initial public offering that values the social network at as much as $96 billion, a move that may reduce his tax bill.
Saverin, 30, joins a growing number of people giving up U.S. citizenship, a move that can trim their tax liabilities in that country.


Kinda reminds my of one of my clients: A doctor with one foot out the door and a 2nd home in Costa Rica.
LINK
fib_1618
Actually, I do believe he renounced his citizenship last September, but that wouldn't make good copy going into next weeks IPO now would it?

Fib
diogenes227
How much is that "exit tax" on the capital gains? And it doesn't matter if he sells the shares or not? If that's the case, and if the estimated worth of his shares is fairly accurate, doesn't that mean he's going owe something like 570 million dollars in taxes here the day Facebook goes public?

I must be missing something because this looks like the dumbest tax move since Zuckerberg shut him out of his 30 percent share according to "The Social Network." Maybe he can run the 570 million on his VISA card and end up paying another 27 percent in interest fees. That would be a smooth move too.

Come to think of it, his tax bill could have paid off Greece's current debt payment and preserved the European Union with enough left over for to buy baklava for everyone in Germany.

If he has trouble coming up with cash for the tax payment or if it just takes a while, maybe we should seize his entire stake in Facebook for tax evasion and use the interest in the meantime to save the whole world. It's not like he can come back from Singapore to fight us on it (if he thinks getting cheated out of a tiny bit of his 3.8 billion by the government now is stressful, just think how he'll be crying with the entire government itself in his face...book, so to speak). Anyway, this way he wouldn't have to worry about the taxes anymore and he could feel good about himself for helping to save the world and I'm sure somehow he won't starve (he went to Harvard after all).



selecto
Don't let the door hit you on the way out.
arbman
Some would not mind dying for their country, some would rather put a price tag on their citizenship...
BigBadBear
often those that hold their citizenship for a price[usually a few mill$ or 2] are the same 1's that proclaim their eternal patriotism daily constitution in pocket[Bachman] or seek deferments during war time [ 1 VP had 5 during Veitnam !] and are the quickest to send 35K/yr marines into battle


milbank
QUOTE
And they say taxes don't drive away the rich


"Singapore doesn’t have a capital gains tax."

milbank
QUOTE (arbman @ May 11 2012, 02:56 PM) *
Some would not mind dying for their country, some would rather put a price tag on their citizenship...


"The Brazilian-born resident of Singapore"

His loyalties are to himself.
milbank
QUOTE
Eduardo's father was a Brazilian industrialist working in export, clothing, shipping, and real estate.

By 1993, Saverin's father had become wealthy, and in 1993 it was discovered that his son Eduardo´s name had been placed on a list of kidnapping victims by gangs specializing in kidnapping for ransom. As a result, the family moved to Miami to find a safer place to live.

Saverin took advantage of Brazil's lax insider trading regulations and made $300,000 via strategic investments in the oil industry.

Since 2010, Saverin has lived in Singapore. He reportedly owns a luxury penthouse suite in Singapore's tallest residential building.

His girlfriend is Wong Hui Ling, a 25 year old university graduate.


http://en.wikipedia.org/wiki/Eduardo_Saverin

It seems the United States served its purpose and now it's over.

Then again. . .

Maybe he wants to go to a country where they have national health care. . .

QUOTE
Singapore has a non-modified universal healthcare system where the government ensures affordability of healthcare within the public health system, largely through a system of compulsory savings, subsidies and price controls. Singapore's system uses a combination of compulsory savings from payroll deductions to provide subsidies within a nationalized health insurance plan known as Medisave. Within Medisave, each citizen accumulates funds that are individually tracked, and such funds can be pooled within and across an entire extended family. The vast majority of Singapore citizens have substantial savings in this scheme. One of three levels of subsidy is chosen by the patient at the time of the healthcare episode.


http://en.wikipedia.org/wiki/Healthcare_in_Singapore
IYB
Somehow it just strikes me as sad when "we the people" start to actually believe that we have the right {or is it the "duty"} to take more and more from our fellow citizens, and then when someone dares to object by "voting with their feet", the only vote they are offered in the matter, we condemn them as selfish and unpatriotic. But that's just me. huh.gif
Rogerdodger
QUOTE (IYB @ May 11 2012, 05:06 PM) *
Somehow it just strikes me as sad when "we the people" start to actually believe that we have the right {or is it the "duty"} to take more and more from our fellow citizens, and then when someone dares to object by "voting with their feet", the only vote they are offered in the matter, we condemn them as selfish and unpatriotic. But that's just me. huh.gif


The Sheriff of Nottingham is always upset when tax money escapes his grasp.
The potential tax revenues could have gone to the King...and his fellows:

Tulsa's George Kaiser was a contribution bundler for a candidate's campaign in 2008. His family foundation held about 36.7 percent of Solyndra. Kaiser made 16 visits to the president’s aides since 2009, according to White House visitor logs but denies having lobbied for Solyndra. But Solyndra continued to receive taxpayer money even after it had defaulted on its $535 million loan.

A guy named Judas also claimed to be concerned about the poor not getting their share, even though he was actually taking it for himself.

Crocodile tears?
milbank
QUOTE (Rogerdodger @ May 11 2012, 06:11 PM) *
QUOTE (IYB @ May 11 2012, 05:06 PM) *
Somehow it just strikes me as sad when "we the people" start to actually believe that we have the right {or is it the "duty"} to take more and more from our fellow citizens, and then when someone dares to object by "voting with their feet", the only vote they are offered in the matter, we condemn them as selfish and unpatriotic. But that's just me. huh.gif


The Sheriff of Nottingham is always upset when tax money escapes his grasp.
The potential tax revenues could have gone to the King...and his fellows:

Tulsa's George Kaiser was a contribution bundler for a candidate's campaign in 2008. His family foundation held about 36.7 percent of Solyndra. Kaiser made 16 visits to the president’s aides since 2009, according to White House visitor logs but denies having lobbied for Solyndra. But Solyndra continued to receive taxpayer money even after it had defaulted on its $535 million loan.

A guy named Judas also claimed to be concerned about the poor not getting their share, even though he was actually taking it for himself.

Crocodile tears?


What does this have to do with the thread unless we are going move into campaign contributions to candidates and what influences they had on what.

We could go on to Haliburton and Iraq.
There's much more.

It's a Big Country where that subject lives.

Ah, forget it. You folks work out who's Judas and who's The Son of *******.

Rogerdodger
QUOTE
What does this have to do with the thread unless we are going move into campaign contributions to candidates and what influences they had on what.



We rotate kings every 4 years.
The king and his minions are always the beneficiaries of an unaffordable government.
The public gets bread and circuses before the final collapse.

Why denigrate those who choose to avoid enriching the crooks?
Lee48
The guy sounds pretty smart to me. Playing the wallstreet system of getting rich. There's a record number of people leaving the US, while they still can. The US is going down the tubes.
Every yr more rights are takin away, assets seized, at some point taxes are raised on everyone just like in Europe, Greece etc.

The biggest suckers are the young people in the military getting their life destroyed for what they have done or seen for some reason that they even figure out is not a good reason.

I still like Canada. Free healthcare, excellent job growth, solid banks without fraud and FED bailing them out at every turn , real estate. Plus they don't fill up their prisons and destroy young peoples lifes that smoke some pot or caught doing a petty crime.
The US is big on punishment and you can't get a job when you get out. Even if there was a job... So more crime..
Rogerdodger
Pirate Party gains force in Germany...


Ragnar Danneskjöld?
Kimston
QUOTE (IYB @ May 11 2012, 05:06 PM) *
Somehow it just strikes me as sad when "we the people" start to actually believe that we have the right {or is it the "duty"} to take more and more from our fellow citizens, and then when someone dares to object by "voting with their feet", the only vote they are offered in the matter, we condemn them as selfish and unpatriotic. But that's just me. huh.gif



I agree. I'm not particularly proud of it, but I'm starting to look around. Lest we forget, a lot of people came to this new country to be free from taxation without representation and other forms of repression. Unfortunately, there's no place to go and start another new country these days. It could be a lot worse (and probably will be in the next few years as the post-bubble contraction continues), but this isn't the country it once was. OTOH, the pastures always seem greener on the other side of the fence.....until you move.
Rogerdodger
QUOTE
The US is big on punishment

Think about how many government jobs the prison system creates.
Like the TSA, it's another "Unaffordable Government" slush fund for the insiders, contractors, suppliers, union employees, etc...

QUOTE
In 2010, for instance, the state spent $6 billion on fewer than 30,000 guards and other prison-system employees. A prison guard who started his career at the age of 45 could retire after five years with a pension that very nearly equaled his former salary.
The head parole psychiatrist for the California prison system was the state’s highest-paid public employee; in 2010 he’d made $838,706. The same fiscal year that the state spent $6 billion on prisons, it had invested just $4.7 billion in its higher education.

LINK
voltaire
QUOTE (IYB @ May 11 2012, 06:06 PM) *
Somehow it just strikes me as sad when "we the people" start to actually believe that we have the right {or is it the "duty"} to take more and more from our fellow citizens, and then when someone dares to object by "voting with their feet", the only vote they are offered in the matter, we condemn them as selfish and unpatriotic. But that's just me. huh.gif



The idea of everyone moving to the lowest common denominator in tax havens, means eventually all end up paying no tax anywhere.

A bit like musical chairs except in the end society collapses IMO.

Rogerdodger
QUOTE (voltaire @ May 11 2012, 10:59 PM) *
A bit like musical chairs except in the end society collapses IMO.


Like Detroit? laugh.gif
See Detroit in Ruins.
arbman
The richest Americans are still American the last time I checked, his motivation is most likely based on other factors and probably the taxation just made the decision easier...
selecto
"Think about how many government jobs the prison system creates."

A large portion of which are a consequence of the "war on drugs" which is actually an industry, not a war. Every American should have the patriotic duty to smoke a little weed and thus contribute to job creation.
OEXCHAOS
It is perfectly moral and good to "shrug" if you see fit. He made US better off and WE are the worse for him leaving.

You can pretend otherwise but the economics are pretty clear. If you don't like it, elect someone who won't cater to parasites and control freaks and who won't penalize productivity for political gain.

It's just that simple.

M
SemiBizz
This is all about personal choice.

This fellow obviously is an "International". While we may be citizens of a particular country, we live on a diverse landscape (thankfully) on the Earth, and there are choices available to us that include the location, laws, geographics, demongraphics etc. that we feel comfortable in... We are also increasingly mobile. We can assume that in addition to having lived in another country and been a citizen of another country, that his loyalties are negotiable. He's already proven that. It may have a business decision, he either didn't think it was worth it or had other reasons for migrating... Let's all rejoice in the fact he still has a choice... outside of that -

Not really newsworthy unless you want to find things to divert attention from the real issues like the debt, the job market and the economy.

Sorry can't be of any assistance here, this discussion adds nothing to fixing our problems.

News really sucks.


But HAVE A GREAT WEEKEND - I'm busy charting cool.gif
Dex
QUOTE (diogenes227 @ May 11 2012, 02:32 PM) *
I must be missing something because this looks like the dumbest tax move since Zuckerberg shut him out of his 30 percent share according to "The Social Network." Maybe he can run the 570 million on his VISA card and end up paying another 27 percent in interest fees. That would be a smooth move too.


The shar valuation is when he renounced - last Sept. So, if his accountants can make the case the shares value is less then the IPO; he would pay less taxes.

Also, USA taxes wolrd income - Singapore, income earned there.

He'll be paying much lower taxes in the future.

Mike McCarthy
QUOTE (Rogerdodger @ May 11 2012, 01:44 PM) *
FACEBOOK CO-FOUNDER GIVES UP U.S. CITIZENSHIP BEFORE IPO

Eduardo Saverin, the billionaire co- founder of Facebook Inc. (FB), renounced his U.S. citizenship before an initial public offering that values the social network at as much as $96 billion, a move that may reduce his tax bill.
Saverin, 30, joins a growing number of people giving up U.S. citizenship, a move that can trim their tax liabilities in that country.


Kinda reminds my of one of my clients: A doctor with one foot out the door and a 2nd home in Costa Rica.
LINK



Where is there ANY reporting -- actual sourced and verified information -- regarding Saverin's motives to renounce his citizenship?

There is not a single word in the entire article indicating that he ever said it had anything to do with taxes. Or that his associates even suggested that it had anything to do with taxes.

We have no idea why he's moving. Certainly not from this article.

This article is pure journalism. Waste of electrons.
Lee48
OK, the main reason wealthy Americans are leaving the country or have one foot out the door is not about taxes, it's just the heavy hand of the US govt to spy on, control, hold you in prison without trial, freeze your bank accounts and seize your property and assets.
If the local govt wants your property al they have to do is find or plant some weed growing on it. And it's gone.

It's getting scary in the US for the average Joe and wealthy people. We no longer have any privacy.

A new exposé in Wired Magazine reveals details about how the National Security Agency is quietly building the largest spy center in the country in Bluffdale, Utah, as part of a secret NSA surveillance program codenamed "Stellar Wind." We speak with investigative reporter James Bamford, who says the NSA has established listening posts throughout the nation to collect and sift through billions of email messages and phone calls, whether they originate within the country or overseas. The Utah spy center will contain near-bottomless databases to store all forms of communication collected by the agency. This includes the complete contents of private emails, cell phone calls and Google searches, as well as all sorts of personal data trails — parking receipts, travel itineraries, bookstore purchases and other digital "pocket litter." "The NSA has constantly denied that they’re doing things, and then it turns out they are doing these things," Bamford says in response to NSA Director General Keith Alexander’s denial yesterday that U.S. citizens’ phone calls and emails are being intercepted. "A few years ago, President Bush said before camera that the United States is not eavesdropping on anybody without a warrant, and then it turns out that we had this exposure to all the warrantless eavesdropping in the New York Times article. And so, you have this constant denial and parsing of words."
Dex
QUOTE (Lee48 @ May 12 2012, 09:12 PM) *
We speak with investigative reporter James Bamford, who says the NSA has established listening posts throughout the nation to collect and sift through billions of email messages and phone calls, whether they originate within the country or overseas.


It should be interesting when the terrorist start to use the US Mail.

Did you ever read "Spy Vs Spy" in Mad magazine - it comes to mind about now.

diogenes227
The numbers become clearer as the day approaches:

BAT-OUT-OF-HELL'S TAX AVOIDANCE

Saving at least $67 million in taxes by flipping off the good old USA on an estimated $2.8 billion take from having the talent (that is to say, family money and privilege) to do nothing more than be accidentally assigned as Mark Zuckerberg's Harvard roommate. Yes, we will miss him. bye.gif



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