Make us your home page
Instagram

Sen. Schumer proposes U.S. tax on people like Facebook's Saverin

WASHINGTON — Sen. Charles Schumer, D-N.Y., proposed legislation Thursday that would impose a 30 percent capital gains tax on people such as Facebook co-founder Eduardo Saverin unless they show they didn't renounce their U.S. citizenship to avoid taxes.

News that Saverin, 30, had renounced his U.S. citizenship and will call Singapore his official home was reported this month in advance of today's initial public offering that now values the social network at as much as $104 billion.

He will save at least $67 million in federal income taxes by dropping his citizenship, according to a Bloomberg News analysis of the company's stock price.

"Eduardo Saverin wants to de-friend the United States of America just to avoid paying taxes," Schumer said. "We aren't going to let him get away with it."

Schumer's proposal would empower the Internal Revenue Service to impose a 30 percent capital gains tax on future investment gains of wealthy individuals who the agency decides renounced their citizenship for tax-avoidance purposes. It also would bar such people from re-entering this country. He said he will move the legislation "as quickly as possible."

"This tax-avoidance scheme is outrageous," Schumer said. "This is a great American success story gone horribly wrong."

Saverin's stake in Facebook is about 4 percent, according to the website whoownsfacebook.com, and may be worth as much as $2.89 billion.

Sen. Schumer proposes U.S. tax on people like Facebook's Saverin 05/17/12 [Last modified: Thursday, May 17, 2012 10:27pm]
Photo reprints | Article reprints

Copyright: For copyright information, please check with the distributor of this item, Bloomberg News.
    

Join the discussion: Click to view comments, add yours

Loading...
  1. For Gov. Rick Scott, 'fighting' could mean vetoing entire state budget

    State Roundup

    Every day, Gov. Rick Scott is getting a lot of advice.

    The last time a Florida governor vetoed the education portion of the state budget was in 1983. Gov. Bob Graham blasted fellow Democrats for their “willing acceptance of mediocrity.”
  2. Potential new laws further curb Floridians' right to government in the Sunshine

    State Roundup

    TALLAHASSEE — From temporarily shielding the identities of murder witnesses to permanently sealing millions of criminal and arrest records, state lawmakers did more this spring than they have in all but one of the past 22 years to chip away at Floridians' constitutional guarantees to access government records and …

    The Legislature passed 17 new exemptions to the Sunshine Law, according to a tally by the First Amendment Foundation.
  3. Data breach exposes 469 Social Security numbers, thousands of concealed weapons holders

    Corporate

    Social Security numbers for up to 469 people and information about thousands of concealed weapons holders were exposed in a data breach at Florida the Department of Agriculture and Consumer Services. The breach, which the agency believes happened about two weeks ago, occurred in an online payments system, spokesperson …

    Commissioner of Agriculture Adam Putnam on Monday that nearly 500 people may have had their Social Security numbers obtained in a data breach in his office.
[Times file photo]

  4. Trigaux: Can Duke Energy Florida's new chief grow a business when customers use less power?

    Energy

    Let's hope Harry Sideris has a bit of Harry Houdini in him.

    Duke Energy Florida president Harry Sideris laid out his prioriities for the power company ranging from improved customer service to the use of more large-scale solar farms to provide electricity. And he acknowledged a critical challenge: People are using less electricity these days. [SCOTT KEELER   |   Times]
  5. Citigroup agrees to pay nearly $100 million fine for Mexican subsidiary

    Banking

    NEW YORK — Citigroup has agreed to pay nearly $100 million to federal authorities to settle claims that a lack of internal controls and negligence in the bank's Mexican subsidiary may have allowed customers to commit money laundering.

    Citigroup has agreed to pay nearly $100 million to federal authorities to settle claims that a lack of internal controls and negligence in the bank's Mexican subsidiary may have allowed customers to commit money laundering. 
[Associated Press file photo]