Saverin flees the US, saves TAX!

There is an update in this post, dated May 23, 2012.

Is there anything more pathetic than this news?

Saverin has a net worth of 2 billion USD. The Facebook IPO will increase that by 3 billion USD, if he is very lucky.

In a nation going to the dogs, even the top dogs are fleeing. The motive, however, is not survival, but greed. This is symptomatic of the malaise that affects the 1%. Increasingly, it is clear that the rich will do anything to stay rich and become more rich – in this case, renounce citizenship of the country whose laws made them rich just to avoid tax liabilities. How much would those taxes dent his net worth? And how much would his future worth increase because he had “a little more to play with” now? How much is enough?

And not just the rich, but mega-corporations too. At least the mega-corps have a stated aim of maximizing shareholder returns. Helping them are the off-shore financial centres and tax havens. These places have no other economic activity worth the name.

Update : Okay, here‘s another take on Saverin’s action, courtesy of an Anonymous Coward on Slashdot.

He did give up his citizenship for tax reasons, but not the tax reasons everyone thinks. He cannot and will not escape any taxes on money he made from the IPO, he earned those shares when he was a US citizen and will pay full taxes on them. He renounced his citizenship because he hasn’t lived in the US in 4 years and was tired of paying taxes to the US for money he was making working in Singapore, which isn’t that unreasonable.

 

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