Renouncing citizenship to avoid taxes may mean Savarin can never enter US again

http://talkingpointsmemo.com/archives/2012/05/buh-bye_2.php

by brown9-2 • 14 years ago

12 19 14 years ago

sp3322• 14 years ago

Good thing he's not avoiding taxation then. I'm not sure where that idea started, actually. When he leaves, he will have to pay an "exit tax" that's just as if he'd sold all his stock. The standard 15% capital gains tax would come to about half a Billion dollars! So he's actually going to be paying a lot of taxes when he leaves.

itsmequinn• 14 years ago

Yes, but then he won't have to pay additional capital gains tax on the stock if it happens to skyrocket in the years following his renunciation of citizenship. You only pay tax on the profit you make on stock investments, so any profit he stands to make in the years following his renunciation will be tax free.

sp3322• 14 years ago

Any profit he stands to make in the years following will be taxed according to the laws of his new residence.

waterlesscloud• 14 years ago

As I read the relevant law, it's sort of a de facto determination that you're renouncing your citizenship for tax reasons if your net worth or income are over certain limits (which he's waaaay over).

It's possible to have that de facto determination overruled by certain government officials if you can present a convincing case to the contrary, but I haven't seen anything indicating that he's done that.

btbuilder• 14 years ago

The article quotes law/procedure that indicates that he would be 'excludable'. I didn't see where it gave evidence that he would be excluded, such as precedent? All aliens are supposed to be treated as a possible immigrant and must provide reason/evidence to prove otherwise.

dguaraglia• 14 years ago

Yeah, I'm sure the US will close the doors to a billionaire... just out of spite.

mistercow3• 14 years ago

Is it "out of spite" when the government fines someone for speeding?

intev2• 14 years ago

It's not "out of spite", but it's because they are breaking the law. What Saverin is doing is completely legal, and it would be petty on US's part to not even give him a US tourist visa.

pan69• 14 years ago

It seems people are very sensitive about someone renouncing his citizenship, as if it's a big crime that's being committed here.

The guy has decided to go live in another country, for reasons none but his own, so why should he hold on to his US citizenship? Oh, I see, it's a US citizenship, given to you by the grace of God himself. You don't just throwaway a precious gift like that. Now do you?

To me it seems there is quite some spite about this with various overly patriotic people out there.

bunderbunder2• 14 years ago

I think it's really more about the taxes. The US is (almost?) unique among countries for laying claim to the income of citizens who are living and working abroad, and the government has an established record of being pretty nasty about it. This law wouldn't be the first time I've heard of the US government taking a "if you don't give us money we won't let you visit your family" attitude towards its expats.

onetwothreefour• 14 years ago

This is just (ugly) nationalism + envy disguised as "opinion". It is surprising to find some of that in the HN comments, but what can you do?

You think the guy now worth billions cares about what petty people think he is or isn't doing? Doubtful.

Best just ignore it and carry on. :)

medusa666• 14 years ago

This may come as a shock, but some people manage to lead perfectly fulfilling lives without ever visiting the US.

About the only inconvenience I can imagine would be the inability to change flights (or refuel his jet) in Miami, but I'm sure he'll manage.

bunderbunder2• 14 years ago

Not being allowed to visit your hometown or college buddies might also be rather inconvenient.

Renouncing citizenship to avoid taxes may mean Savarin can never enter US again

Related Stories