Ex-PATRIOT Act proposed after Facebook co-founder's citizenship renouncement
WASHINGTON -- Democratic Sens. Chuck Schumer (N.Y.) and Bob Casey (Pa.) will take aim at Facebook co-founder Eduardo Saverin Thursday when they introduce legislation designed to tax expatriates even after they have left the country.
Saverin, who stands to make $4 billion from Facebook's expected IPO on Friday, announced his decision last week. His move is widely believed to be a financial one.
The two senators, who call his decision an "outrage," say Saverin stands to save $67 million in taxes by renouncing his citizenship.
Their so-called "Ex-PATRIOT Act," would impose a mandatory 30 percent tax on capital gains for those who renounce their citizenship and would prohibit individuals like Saverin from re-entering the country.
Saverin, who was born in Brazil and became a US citizen in 1998, gave up his citizenship in Sept. 2011 and has taken up residence in Singapore, which has no capital gains tax.
A spokesman for Saverin said his citizenship renouncement had "nothing to do with taxes" and called the legislation a "reaction to perception, not reality."