AS THE son of one American immigrant and the father of another, I find it hard to muster much empathy for Facebook co-founder Eduardo Saverin and his decision to renounce his US citizenship. Saverin, who was born in Brazil and brought to this country as a child, turned in his American passport last year and moved to Singapore; it is widely assumed that he did so to reduce the taxes he would otherwise have to pay on the billion-dollar gains generated by Facebook’s IPO. Saverin denies, not very convincingly, that his expatriation was motivated by tax considerations. “His decision had nothing to do with dissatisfaction here,” a spokesman said, “but with his strong desire to do business there.”
Well, it takes all kinds to make a global economy, and maybe Saverin genuinely prefers doing business in a quasi-authoritarian society where freedom of the press is unknown. Singapore’s economy is one of the world’s freest, and its taxes are considerably lower than America’s. If such things matter more to Saverin than the blessings that come with American citizenship, it was always his right to leave. At least he had the grace to describe himself as “very grateful to the US for everything it has given me.”
Comments
Jeff, you said it exactly correct. I have said on these pages for years that tax policy does influence human behavior, and this is a a good example. If he broke no rules, he should not be scorned so heavily. Tax policy is always going to drive people to act in their own self interest. The true goal of tax policy should be to create incentives for productive behaviors which help the economy. It should NEVER be to target the actions of a single person whose legal behavior offends you.
Therein lies the problem with American society and thinking today. What's the most important thing in my life. My profits. My country, my duty as a citizen, of no import. Why did some of us go to war for people such as this or "Richmond12" below. If you don't care about the nation why should we. Why should police or fireman or soldiers be expected to "sacrifice" when you're so self oriented that the expense of running and protecting your civilization, building its infrastructure, which is tax policy, you view as onerous. I have said before on these pages as far as I can see regarding this "new" right, this libertarian nonsense, we should give them what they want and let the country collapse and good riddance. Still, we can't do that because good patriotic Americans would suffer, so we are left listening to this nonsense.
Jacoby is so accustomed to putting the interests of another country (Israel) ahead of American interests and those of the very wealthy ahead of the average American that he has no trouble sticking up for a tax cheat like Saverin too. And look how cheaply Jacoby will sell out the U.S. Saverin put $30,000 of his own money into Facebook yet when two U.S. Senators complain about Saverin's decision to renounce US citizenship to avoid taxes, Jacoby questions their values by calling them "odious" and practically wants them to grovel before Saverin in gratitude for his role in making it possible for them to be liked on Facebook.
Well said.
Clearly, Mr Jacoby's patriotism, and that of his sycophant Richmond, runs deep. We have plenty of citizens who have moved to Asia to serve our national interests and not their own, and more than a few return in boxes. For those of us who treasure our citizenship as Americans, it is unthinkable that one would renounce it for any reason, let alone financial. Apparently Mr. Jacoby is not one of those people. But it is a free country and he has the right to express his point of view, but like the Senators he rails against, I have the right to heap scorn upon those who would renounce American citizenship or defend those who do.
On a different note, for Mr. Jacoby to compare Americans who move from one American location to another for tax reasons with Mr. Saverin is a weak and laughable device. Mr. Jacoby is being intentionally obtuse about the true nature of the issue, which is citizenship. But I've come to expect less and less from him.
About 1800 people renounced their citizenships last year. Some for tax reasons. These folks should be explicitly and immediately purged from the voter polls. They are not citizens but just were, and hence could have (now) false documents "proving" their eligibility to vote. They strike me as people likely to attempt voter fraud.
Well, we know that at least you and "Jeff" agree that it's OK to be an American just when it suits you personally. Even Mikey didn't have your back on this episode of "Profiles in Courage".
The most disturbing thing is the implicit legitimizing of a non-democracy like Singapore. Some rich people will happily choose to live in police states or corrupt, brutal sultanates so long as their wealth buys them exemption from the atrocities perpetrated by such governments.
As unfortunate as the moral of this story is (i.e., greed is good) the focus must be on this country's tax codes rather than one more wealthy person exploiting the law (but NOT breaking it). Over and over again, disparate groups agree that tax overhaul (or at least, modest adjusting)is overdue. Here's one thing we could start with: partial deductibility of medical insurance expense.