Facebook Co-Founder Saverin Gives Up U.S. Citizenship Before IPO
Eduardo Saverin, the billionaire co- founder of Facebook Inc. (FB), renounced his U.S. citizenship before an initial public offering that values the social network at as much as $96 billion, a move that may reduce his tax bill.
Facebook plans to raise as much as $11.8 billion through the IPO, the biggest in history for an Internet company. Saverin’s stake is about 4 percent, according to the website whoownsfacebook.com. At the high end of the proposed IPO market capitalization, that would be worth about $3.84 billion. His holdings aren’t listed in Facebook’s regulatory filings.
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 Brazilian-born resident of Singapore is one of several people who helped Mark Zuckerberg start Facebook in a Harvard University dormitory and stand to reap billions of dollars after the world’s largest social network holds its IPO.
“Eduardo recently found it more practical to become a resident of Singapore since he plans to live there for an indefinite period of time,” said Tom Goodman, a spokesman for Saverin, in an e-mailed statement.
Saverin’s name is on a list of people who chose to renounce citizenship as of April 30, published by the Internal Revenue Service. Saverin made that move “around September” of last year, according to his spokesman.
Besides helping cut tax bills stemming from the Facebook, the move may also help him avoid capital gains taxes on future investments since Singapore doesn’t have a capital gains tax.
There was once a time when talented, wealthy individuals, and many others, fled their home countries for the security and freedom the United States offered. Now, thanks to three or four generations of creeping socialism, intrusive laws, burdensome regulations, and confiscatory taxes, the trend has reversed. Now, the successful find it more advantageous to live anywhere but in America.
We lose much more than tax dollars when the best and brightest, and even the luckiest, abandon the nation that sees them as little more than a revenue source for social engineering fantasies. We lose their drive, their work ethic, their capacity for innovation, and their ability to create much-needed jobs, to name a few things.
While those on the left seek to gather power by giving away the store to the disadvantaged and those on the right seek to give it away to the already wealthy and powerful, those of us who sit between them find ourselves squeezed tighter and tighter, our standard of living decreasing, and our security, rights, and freedom threatened from within.
Is it any wonder so many are abandoning America for more welcoming nations? Or writing books to help people leave?
What do you think about this?
Under what conditions would you renounce your citizenship?
Or have you already done so?