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

parallel_prankster writes "Bloomberg reports that Eduardo Saverin, the billionaire co- founder of Facebook, has 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. From the article: 'Facebook plans to raise as much as $11.8 billion through the IPO, the biggest in history for an Internet company. Saverin's stake is about 4 percent, according to the website Who Owns Facebook. At the high end of the IPO valuation, that would be worth about $3.84 billion. Saverin, 30, joins a growing number of people giving up U.S. citizenship, a move that can trim their tax liabilities in that country. Saverin won't escape all U.S. taxes. Americans who give up their citizenship owe what is effectively an exit tax on the capital gains from their stock holdings, even if they don't sell the shares, said Reuven S. Avi-Yonah, director of the international tax program at the University of Michigan's law school. For tax purposes, the IRS treats the stock as if it has been sold.'"

Comments

Re:Requirements for Citizenship in Singapore

[Taco Cowboy]

At least in Singapore, when you pay taxes, you know that your tax money won't go to raising the children who don't want to work, stay at home, making babies and taking drugs

Trendsetting

[sixtyeight]

I really hope this becomes a trend among CEOs who are presently in the U.S.. It's a brilliant way to get rid of many of our parasites; we just need to find a way to convince our politicians to do it as well and we'll be home-free.

Re:Good for him

[J'raxis]

Let's just shut down schools, hospitals, and such.

See my earlier post about what the U.S. Government spends its money on, and how little you'd have to reduce the U.S. Government in size in order to completely eliminate the income tax. The words "schools" and "hospitals" appears nowhere in that post.

On the topic of hospitals, here is what government intervention in what used to be a free market system has accomplished.

"Going Galt" is a breaking of the social contract ...

A contract requires consent. Please show me where I consented to this contract.

Re:Vaya con Dios

[artor3]

I hope the same, in an entirely different manner. The man is a thief. He lived and prospered off the public dime, and then ran out on the bill when it was his turn to give back. I hope he has a heart attack waiting to board the plane out, and no one lifts a finger to aid him.

Re:Unfair taxes !

[tqk]

Thanks for the incomplete picture, now please, tell us about the OTHER taxes being paid, and the ACTUAL spending of the budget.

I'll try (but take w a grain of salt; this is more rant than info). In this era of deficit spending, none of this stuff makes a lick of sense. Cf. that annual "debt ceiling" kafuffle that Congress goes through: the gov't wants to go further in debt to spend more money. Taxes? Ptheh. It's simpler to just print more paper (or right-shift the decimal point; whatever).

What's the US' national debt now? How many generations will it take to pay those trillions of dollars back? Does anyone in charge actually care about that kind of stuff, or does Keynesianism still rule (Yes!)?

The IRS is like paint on the hull of the Titanic. Your tax dollars cannot possibly keep that ship from sinking. As long as everyone accepts that Bernie Madoff ... sorry, the Federal Reserve knows what it's doing, the dance can continue. Musical chairs anyone? Listen to the pretty music.

Ah, taxes. Payroll taxes, real estate taxes, sin taxes, sales taxes, import/export taxes, municipal taxes, state taxes, capital gains taxes, corporate taxes, estate taxes, ...

You suckers. Sorry, we suckers, 'cause we built the damned thing and there's no way to avoid its clutches short of leaving for an even more rapaciously greedy venue. The only way to get your money's worth out of it is to get 'em to shoot you. Death by cop gets you out of the treadmill, but it's going to hurt.

I'll be in that roadside diner serving breakfast alongside that philosopher guy. I'm saving up to fund a new school: "Ragnar Daneskjold's School of Confrontational Politics and Gunboat Diplomacy."

Re:Good for him

[J'raxis]

Your parents consented to it for you when they either gave birth to you ...

A hereditary obligation? You just described feudalism.

If you wish to no longer be bound by that contract, I suggest you leave the country, forfeit the priveleges of the civilized society that has already given you countless advantages and protections without which you would likely be destitute or dead, and find some place else in the world to hang out with other 'rugged individualists'. Good luck with that.

Thanks! Many of us are doing almost exactly what you suggest!

PS I used to be a Randroid too, and once upon a time I would have agreed with you. Then I grew up, attained some sophistication, discovered empathy, and got a clue.

So thieving from people at gunpoint is what you call "empathy"? Well, I guess it's not you who do the actual thievery: You let the U.S. Government and their bureaucrats point the guns, steal other people's wealth, and then redistribute it down to you using an immense, multi-tiered bureaucracy of state, federal, and local agencies. That must be the "sophistication" part! :)