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. Pinellas licensing board asks Sen. Jack Latvala for $500,000 loan

    Local Government

    The troubled Pinellas County agency that regulates contractors wants Sen. Jack Latvala to help it get a $500,000 lifeline from the state to stay afloat.

    State Sen . Jack Latvala, R- Clearwater, is being asked to help the Pinellas County Construction Licensing Board get $500,000 from the state so it can stay open beyond February.  [SCOTT KEELER   |   Times]
  2. In advertising, marketing diversity needs a boost in Tampa Bay, nationally

    Business

    TAMPA — Trimeka Benjamin was focused on a career in broadcast journalism when she entered Bethune-Cookman University.

    From left, Swim Digital marketing owner Trimeka Benjamin discusses the broad lack of diversity in advertising and marketing with 22 Squared copywriter Luke Sokolewicz, University of Tampa advertising/PR professor Jennifer Whelihan, Rumbo creative director George Zwierko and Nancy Vaughn of the White Book Agency. The group recently met at The Bunker in Ybor City.
  3. Tampa Club president seeks assessment fee from members

    News

    TAMPA — The president of the Tampa Club said he asked members last month to pay an additional assessment fee to provide "additional revenue." However, Ron Licata said Friday that the downtown business group is not in a dire financial situation.

    Ron Licata, president of the Tampa Club in downtown Tampa. [Tampa Club]
  4. Under Republican health care bill, Florida must make up $7.5 billion

    Markets

    If a Senate bill called the Better Care Reconciliation Act of 2017 becomes law, Florida's government would need to make up about $7.5 billion to maintain its current health care system. The bill, which is one of the Republican Party's long-promised answers to the Affordable Care Act imposes a cap on funding per enrollee …

    Florida would need to cover $7.5 billion to keep its health care program under the Republican-proposed Better Care Reconciliation Act of 2017.  [Times file photo]
  5. Amid U.S. real estate buying binge by foreign investors, Florida remains first choice

    Real Estate

    Foreign investment in U.S. residential real estate recently skyrocketed to a new high with nearly half of all foreign sales happening in Florida, California and Texas.

    A National Association of Realtors annual survey found record volume and activity by foreign buyers of U.S. real estate. Florida had the highest foreign investment activity, followed by California and Texas. [National Association of Realtors]