Sens. Charles Schumer, D-N.Y., and Bob Casey, D-Pa., unveiled a comprehensive plan Thursday morning to respond to Facebook co-founder Eduardo Saverin renouncing his U.S. citizenship. The lawmakers said that Saverin’s move was a way to dodge paying taxes on profits he was expected to collect when the social-networking company goes public on Friday.
Saverin, a partial owner of Facebook, has lived in Singapore since 2009 and renounced his U.S. citizenship in September. The senators say the avoidance scheme could reportedly help him duck paying up to $67 million in taxes since Singapore, unlike the U.S., has no capital gains tax. “That amount could increase even further as Facebook’s stock price rises,” the Senators said.
During a press conference on Thursday morning, the senators called Saverin’s move an “outrage” and introduced the Ex-PATRIOT Act (“Expatriation Prevention by Abolishing Tax-Related Incentives for Offshore Tenancy” Act), which would re-impose taxes on expatriates like Saverin even after they flee the United States and take up residence in a foreign country. Their plan would also bar individuals like Saverin from re-entering the country.