When Facebook co-founder Eduardo Saverin renounced his citizenship and moved to Singapore to avoid potentially paying tens of millions of dollars in taxes on gains he made from Facebook’s initial public offering last week, some on the right suggested it is time to take a closer look at the country’s system of taxation. And some on the left have suggested it is time to look at a way to impose taxes on people like Saverin.
New York Democratic Sen. Chuck Schumer and Democratic Pennsylvania Sen. Bob Casey last week unveiled the so-called Ex-PATRIOT ACT (Expatriation Prevention by Abolishing Tax-Related Incentives for Offshore Tenancy) to prevent this situation from happening again. It would impose a mandatory 30-percent tax on the capital gains of individuals who renounce their citizenship to evade taxes, and would bar them from reentering the country.
On Sunday’s broadcast of ABC’s “This Week with George Stephanopoulos” Republican Speaker of the House John Boehner seemed to endorse that idea.
“There’s already a law on the books, George,” Boehner said. “But this is outrageous. This is absolutely outrageous — that somebody would renounce their citizenship to avoid paying taxes. And yes, it’s already against the law.”
Boehner said he would support Schumer and Casey’s legislation, if it were deemed necessary.
“I’m not sure it’s necessary,” Boehner said. “But if it is necessary — sure I would support it.”