May 19, 2012 by Old Soul
According to articles on Yahoo and Fox, Senator Chuck Schumer is leading an effort to impose taxes and penalties on U. S. expatriates who renounce their citizenship as a means to avoid taxes. The catalyst for this is the case of Eduardo Saverin, a co-founder an owner of Facebook who renounced his U. S. citizenship last year and now resides primarily in Singapore. It is alleged that he did so in order to avoid paying a capital gains tax of up to 67 million dollars. Coincidentally, Singapore has no such tax.
Schumer and his colleague Bob Casey have created the “Ex-Patriot Act” which will require anyone to prove that tax evasion is not the reason for renouncing their citizenship. Failure to do so will result in a hefty tax assessment and permanent disallowance of reentry into the United States. All this based on an anecdote and despite Mr. Saverin’s denial of such an evasion.
This potential law is based upon the premise that individuals should value their citizenship above their individual liberty. Consequently, anyone who takes steps to retain and protect their property by renouncing their citizenship should be subject to grave penalties to include being irreconcilably ostracized by the government. Furthermore, the expectation of liberty demonstrated through promoting one’s individual interests is contemptible, while national loyalty demonstrated through the on-demand relinquishment of property is desirable.
Personal integrity and freedom are more important than national loyalty! An individual’s right to maintain the integrity of his or her property, must not be subject to the politician’s desire to maintain power. Nevertheless, Senator Schumer seems to be incapable of recognizing that some might prefer unabridged rights and pleasures of ownership. Instead, Schumer is more inclined to confiscate property as if it is his right to do so.
Mr. Saverin made his fortunes by collaborating with others in order to provide a service; a service which over time, signed on hundreds of millions of users. Each user did so willingly and by legal agreement. How does this by any means default to a federal right to intervene by taking that which rightfully belongs to Mr. Saverin as a result of holding up his end of the agreement? It does not! Someone needs to tell that to Senators Schumer and Casey, and the other legislators who hold their worldview.
In case the senator has not noticed, America does not host the only party on the planet. If Singapore is offering a better deal regarding the retention of property- in this case personal revenues- then it is logical (and should be legal) for Mr. Saverin or any else who desires such a deal to take it without qualification. Furthermore, there should be no obligation to prove motive or intent. Instead of punishing him and others who allegedly renounce for profit, it would be far better to change or demolish the federal tax structure which encourages it. According to Thomas Jefferson in the Declaration of Independence, such individuals seek to “throw off” (not overthrow) a government which they believe to be unjust in this regard. Therefore, their actions are in keeping with the divine dissemination of rights which gave us our grand nation; a nation established upon a Constitution which recognizes such rights.