Facebook Founder Renounces US Citizenship: Why Are We Driving Away Entrepreneurs?
May 17 2012 by ChiefExecutive.net
One of the founders of Facebook, Eduardo Saverin, is going to save $67 million in taxes by renouncing his U.S. citizenship before Facebook’s IPO. Saverin was born in Brazil and now resides in Singapore.
This Facebook founder is joining what seems to be a growing trend. According to Bloomberg,1,780 people gave up their U.S. citizenship in 2011. This is a large jump from the 235 who did so in 2008.
Singapore doesn’t have a capital gains tax, but of course the U.S. does. And it is about to rise to 60 percent with expiration of the 2003 tax cut that was extended through the end of this year.
So the question is: do we want to drive our entrepreneurs into the arms of foreign domains to prove some nebulous point? Mr. Saverin, and others that may follow his example, may yet prove useful as poster boys for tax reform.
Let’s hope home grown types like Michael Dell don’t pick up and leave.