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

Reality Orlando · May 11, 2012

More potential tax dollars down the drain.

"Saverins name is on a list of people who chose to renounce citizenship as of April 30, published by the Internal Revenue Service. Saverin renounced his U.S. citizenship around September of last year, according to his spokesman.

Singapore doesnt have a capital gains tax. It does tax income earned in that nation, as well as certain foreign- sourced income, according to a government website on tax policies there."

Kimster · May 11, 2012

Hey RO! :hug: Do you have a link?

I'm not being a pain. Seriously. I want to look at the article cuz I thought they just built a big facility in Oregon so........... Are they moving?

Reality Orlando · May 11, 2012

Kimster said:
Hey RO! :hug: Do you have a link?

I'm not being a pain. Seriously. I want to look at the article cuz I thought they just built a big facility in Oregon so........... Are they moving?

Oops, sorry, I forgot to post it:

http://www.bloomberg.com/news/2012-05-11/facebook-co-founder-saverin-gives-up-u-s-citizenship-before-ipo.html

Reality Orlando · May 11, 2012

No, I think he's just trying to dodge some of the taxes on the windfall from the IPO, at least that's what it seems like to me. How sad...U. S. schooled and gave him this opportunity....

AnaTeresa · May 11, 2012

Ugh. People like that disgust me.

TrackerSam · May 11, 2012

http://www.boston.com/Boston/busine...p-ahead-ipo/SizC7IzMm0OiiyV58sS6UI/story.html

Kimster · May 11, 2012

TrackerSam said:
http://www.boston.com/Boston/busine...p-ahead-ipo/SizC7IzMm0OiiyV58sS6UI/story.html

According to that link, he wasn't a natural citizen so he probably felt he has no ties to the US.

"Saverin moved to the US in 1992, and became a citizen in 1998, his spokesman said. He has invested in Asian, US, and European companies, according to his spokesman."

mysteriew · May 11, 2012

Can they now refuse to give him visas for return visits?

crystalgenie · May 11, 2012

He is not the first to evade paying taxes and won't be the last. It won't make a difference but it makes me think about closing my Facebook account.

I have been talking to financial advisors as well as watching what they have been saying about Facebook and from what I am hearing it isn't a recommended buy unless you have some spare change laying around.

redheadedgal · May 11, 2012

1) don't get the uproar... if it were you... ??

2) people are free to move where they want, right?

3) and besides, is this fair?

Saverin, 30, joins a growing number of people giving up U.S. citizenship ahead of a possible increase in tax rates for top earners.

Reality Orlando · May 11, 2012

redheadedgal said:
1) don't get the uproar... if it were you... ??

2) people are free to move where they want, right?

3) and besides, is this fair?

Saverin, 30, joins a growing number of people giving up U.S. citizenship ahead of a possible increase in tax rates for top earners.

If it were me? I have no problem paying my fair share of taxes. We are driving the wealthy away and rather than get what's fair we will end up with nothing and the middle class will end up picking up the tab.

AnaTeresa · May 11, 2012

redheadedgal said:
1) don't get the uproar... if it were you... ??

2) people are free to move where they want, right?

3) and besides, is this fair?

Saverin, 30, joins a growing number of people giving up U.S. citizenship ahead of a possible increase in tax rates for top earners.

The problem to me is that he's not really moving - just giving up citizenship. So he wants the benefits of being here but not the costs.

And frankly, I'm in the lower brackets. I don't make much - I work, but I'm also still a student. And not to turn this into a tax debate, but I would have no problem paying higher taxes to support more government programs. I consider that a civic duty. So to me, if anything is unfair, it's someone dodging their responsibilities because they are selfish.

Nova · May 11, 2012

Reality Orlando said:
If it were me? I have no problem paying my fair share of taxes. We are driving the wealthy away and rather than get what's fair we will end up with nothing and the middle class will end up picking up the tab.

There are ways of fixing this problem: high luxury taxes on items sold in the US and only available to the rich, corporate taxes, etc. Other countries make sure they get their tax dollars regardless of the individual's citizenship.

We could, too, if Congress could find the political will.

i.b.nora · May 11, 2012

Its just about greed. If any of these new billionaires really cared about anyone or anything other than themselves, they would become philanthropists. These Facebook people don't strike me as such. I think Zuckerberg has given some money to something, but I really can't stand him just on principle. He stole the idea from those twins. In any case, Facebook is not what I would call a major advancement or cultural improvement to our society. The data miners love it though.

Reality Orlando · May 11, 2012

I am not in favor of more federal government nor of taking more money from people who are paying their fair share. I am certainly a middle income earner as well. I don't want anything from the government. I can and have taken care of my own even as a single mother. I feel that we need to tackle our problems on a local level where we get the dollars, not the pennies left after IRS, EPA, and all the other myriad government programs get theirs. Just think how many people we could feed with just ONE day of the interest we pay on the national debt. It's out of control and throwing more money at it will not solve the problem.

redheadedgal · May 12, 2012

about "driving the wealthy away" and the fear that "the middle class will end up picking up the tab", this should be comforting:

(both quotes from aforementioned linked article in post #3)

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.

i would listen to my tax attorney too, btw:

Renouncing your citizenship well in advance of an IPO is “a very smart idea,” from a tax standpoint, Avi-Yonah said. “Once it’s public you can’t fool around with the value.”

redheadedgal · May 12, 2012

saverin isn't doing anything illegal. and according to reports he's been living abroad since 2010...

i do wonder if all this criticism stems from jealou$y... ::shrugs::

angelmom · May 12, 2012

Interesting that people are POed at this guy...but not these people:

http://www.wthr.com/video?autoStart=true&topVideoCatNo=default&clipId=7054149

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

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