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Senators introduce act to tax investors who move abroad

The move is a punative measure against a Facebook co-founder who has renounced his U.S. citizenship to avoid paying taxes when the company goes public.

By Staff Writer | Updated on May 17, 2012

Sens. Charles Schumer, D-N.Y., and Bob Casey, D-Pa., unveiled a comprehensive plan Thursday morning to respond to Facebook co-founder Eduardo Saverin renouncing his U.S. citizenship. The lawmakers said that Saverin’s move was a way to dodge paying taxes on profits he was expected to collect when the social-networking company goes public on Friday.

Saverin, a partial owner of Facebook, has lived in Singapore since 2009 and renounced his U.S. citizenship in September. The senators say the avoidance scheme could reportedly help him duck paying up to $67 million in taxes since Singapore, unlike the U.S., has no capital gains tax. “That amount could increase even further as Facebook’s stock price rises,” the Senators said.                       

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