The Ex-Patriot Act

[c1ue]

More details on the Ex-Patriot act - the bill sponsored in response to Saverin:

http://abcnews.go.com/blogs/politics...ns-tax-scheme/

Sen. Chuck Schumer, D-N.Y., has a status update for Facebook co-founderEduardo Saverin: Stop attempting to dodge your taxes by renouncing your U.S. citizenship or never come to back to the U.S. again.In September 2011, Saverin relinquished his U.S. citizenship before the company announced its planned initial public offering of stock, which will debut this week. The move was likely a financial one, as he owns an estimated 4 percent of Facebook and stands to make $4 billion when the company goes public. Saverin would reap the benefit of tax savings by becoming a permanent resident of Singapore, which levies no capital gains taxes.At a news conference this morning, Sens. Schumer and Bob Casey, D-Pa., will unveil the “Ex-PATRIOT” – “Expatriation Prevention by Abolishing Tax-Related Incentives for Offshore Tenancy” – Act to respond directly to Saverin’s move, which they dub a “scheme” that would “help him duck up to $67 million in taxes.”The senators will call Saverin’s move an “outrage” and will outline their plan to re-impose taxes on expatriates like Saverin even after they flee the United States and take up residence in a foreign country. Their proposal would also impose a mandatory 30 percent tax on the capital gains of anybody who renounces their U.S. citizenship.The plan would bar individuals like Saverin from ever reentering the United States again.“Eduardo recently found it more practical to become a resident of Singapore since he plans to live there for an indefinite period of time,” Tom Goodman, Saverin’s spokesman, told Bloomberg News in an email.Last year 1,700 people renounced their U.S. citizenship.

Wasn't it under 100/month just a couple years ago?

Definitely locking down the pot lid tighter as the water heats up...

[don]

Re: The Ex-Patriot Act

Last year 1,700 people renounced their U.S. citizenship

Out of a country of 313,000,000 +

Are these extremely important people who are leaving?

Is this primarily a scare tactic for the rest of us?

Thoughts?

[dcarrigg]

Re: The Ex-Patriot Act

It's just trying to prevent billionaires from all renouncing US citizenship to become citizens of Singapore or the Isle of Man or San Marino, or whatever other corrupt cesspool regime offers them tax free havens and citizenship online with the click of a button.

Besides, tax dodging is the whole point of renouncing citizenship quickly rather than hanging onto it while you're abroad.

It's moot anyhow.

The House will never pass this.

[c1ue]

Re: The Ex-Patriot Act

Out of a country of 313,000,000 +

Are these extremely important people who are leaving?

Is this primarily a scare tactic for the rest of us?

Thoughts?

Let me put it this way: if things are so good, why are the numbers going up?

Renouncing US citizenship isn't the same as just leaving and never coming back.

[reggie]

Re: The Ex-Patriot Act

In part, this narrative is designed to enrage the 99%'ers and give them a better focus on their targets. High net worth individuals are most certainly going to experience increased fear as the system turns up the gain & sharpens public focus.

[thriftyandboringinohio]

Re: The Ex-Patriot Act

In part, this narrative is designed to enrage the 99%'ers and give them a better focus on their targets. High net worth individuals are most certainly going to experience increased fear as the system turns up the gain & sharpens public focus.

Such tactics have worked before. I'm thinking of the peasant's revolt. From Wikipedia, emphasis mine:

The Peasants' Revolt, Wat Tyler's Rebellion, or the Great Rising of 1381 was one of a number of popular revolts in late medieval Europe and is a major event in the history of England. Tyler's Rebellion was not only the most extreme and widespread insurrection in English history but also the best-documented popular rebellion to have occurred during medieval times. The names of some of its leaders, John Ball, Wat Tyler and Jack Straw, are still familiar in popular culture, although little is known of them.The revolt later came to be seen as a mark of the beginning of the end of serfdom in medieval England, although the revolt itself was a failure. It increased awareness in the upper classes of the need for the reform of feudalism in England and the appalling misery felt by the lower classes as a result of their enforced near-slavery.

[don]

Re: The Ex-Patriot Act

It increased awareness in the upper classes of the need for the reform of feudalism in England and the appalling misery felt by the lower classes as a result of their enforced near-slavery.

Does anybody think that was their principal motivation

[doom&gloom]

Re: The Ex-Patriot Act

More details on the Ex-Patriot act - the bill sponsored in response to Saverin:

http://abcnews.go.com/blogs/politics...ns-tax-scheme/



Wasn't it under 100/month just a couple years ago?

Definitely locking down the pot lid tighter as the water heats up...

the pols in DC do their best to pluck everything up, then go looking for scapegoats in citizens who choose to exit, baseball players on steroids, etc. All the while they exempt themselves regularly from the same laws they apply to everyone else. yes, there ARE some pigs in the US that are simply more equal...

[thriftyandboringinohio]

Re: The Ex-Patriot Act

Does anybody think that was their principal motivation

That explanation may be overly generous. More likely is fear of mob action at their personal estate, ending with them swinging from a tree limb.

[lakedaemonian]

Re: The Ex-Patriot Act

Looks like the wealthy might be moving around WITHIN what remains of the Republic:

http://www.cnbc.com/id/48120446

Which for good or bad, I thought was one of the reasons why a Republic is a form of government I prefer.

Also, have a look at a name from the last minutes of the Clinton Administration:

Denise Rich(Eisenberg), former wife of Marc Rich...who was pardoned in the last minutes of the Clinton Presidency.

He was the guy that put Zug Switzerland on the map of US media for a second......was indicted on tax evasion charges....did oil deals with Iran during the hostage crisis...and was one of the Justice Department's "Most Wanted".

He was pardoned(holds a handful of passports as well), and his former wife renounces 12 years later.

http://www.reuters.com/article/2012/...78219220120710

[nedtheguy]

Re: The Ex-Patriot Act

redacted

[globaleconomicollaps]

Re: The Ex-Patriot Act

That may be the stated intent from the Democratic senators. However, as opposed to the fleeing billionaires, which probably number 1 or 2, there are 3 to 6 million http://www.time.com/time/world/artic...983238,00.html US citizens living around the world, either expats (myself) or dual citizens, that are wondering why the US is one of the only countries in the world that taxes foreign income made outside of the US above a certain amount - $92,900 for 2011. This is hardly even an upper middle class wage, let alone the "1%". You may not have even set foot in the US, but if you earn over that amount, you get taxed because you are a US citizen. Plus, every year, I have to let the US know about any account over $10,000 existing outside of the country. I am lucky to live in a country (Australia) that has a tax agreement with the US so I don't get double taxed. However, there are lot of countries not on this list http://www.irs.gov/publications/p54/...blink100047616 that I wouldn't consider cesspool regimes. Hardly any representation from Central/South America, and I've seen several people on here talking about living in Argentina and Uruguay, which don't appear. Any foreign income made over the above amount gets doubly taxed.

I highly doubt this was the intent, but if one was wearing a stylish tinfoil hat and looking for a hidden conspiracy, there is a more plausible case to say that the bill is actually to make the expats/dual citizens around the world think twice about ever renouncing citizenship.

This may be hard to believe, but I am convinced that two million dollar will be chump change in 10 years. Wages will rise along with prices, to the point that ordinary working people will bring home a million dollars a year. The intent of this legislation is not just to "stick it to the rich", but to stick it to everybody.

[dcarrigg]

Re: The Ex-Patriot Act

This may be hard to believe, but I am convinced that two million dollar will be chump change in 10 years. Wages will rise along with prices, to the point that ordinary working people will bring home a million dollars a year. The intent of this legislation is not just to "stick it to the rich", but to stick it to everybody.

I can't see an end to the wage deflation / asset deflation / commodity inflation environment we're in now so soon.

How can there be wage inflation with so many unemployed and so many millions more taking pay / hours cuts?

I can see assets inflating again. The perpetual motion FIRE machine could kick back on.

But not wages. Not without dramatic political change.

There is legislation out there that wants to stick it to (almost) everybody.

It's the kind that actually passes, is all.

This bill won't.

[reggie]

Re: The Ex-Patriot Act

It increased awareness in the upper classes of the need for the reform of feudalism in England and the appalling misery felt by the lower classes as a result of their enforced near-slavery

Does anybody think that was their principal motivation

I'd say that this time the goal is to allow the 99% to succeed in order to reduce threat risk to the system by any of the high net worth individuals remaining.

And here's Brez stirring up the 99% while putting a little fear into the 1% folks...

[doom&gloom]

Re: The Ex-Patriot Act

Looks like the wealthy might be moving around WITHIN what remains of the Republic:

http://www.cnbc.com/id/48120446

Which for good or bad, I thought was one of the reasons why a Republic is a form of government I prefer.

Also, have a look at a name from the last minutes of the Clinton Administration:

Denise Rich(Eisenberg), former wife of Marc Rich...who was pardoned in the last minutes of the Clinton Presidency.

He was the guy that put Zug Switzerland on the map of US media for a second......was indicted on tax evasion charges....did oil deals with Iran during the hostage crisis...and was one of the Justice Department's "Most Wanted".

He was pardoned(holds a handful of passports as well), and his former wife renounces 12 years later.

http://www.reuters.com/article/2012/...78219220120710

I wouldn't mind a handful of passports or the good life in Zug.