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I think the way the US claims taxes on foreign income is wrong. But this is clearly not foreign income, and he's leaving with clear foreknowledge of a likely f

I think the way the US claims taxes on foreign income is wrong. But this is clearly not foreign income, and he's leaving with clear foreknowledge of a likely future windfall. I don't think anyone is claiming he has not complied with the law. They're saying that if he wants to renounce citizenship, he must also renounce the benefits of being in the US. If that's truly his intention anyway, then he has nothing to worry about, right? I'm sure that even if this happens he's not going to shed many tears. If he wants to see his family, they can just meet somewhere else.

nirvana 14y ago
Either he sold his Facebook stock before leaving, in which case he already paid taxes on it. Or he didn't, and since FB is an american company listed on an american exchange, when he sells any of it he'll still be subjected to long term capital gains, as any other non-US citizen who owns stock on a US exchange is. Thus the only thing to be upset about is that we have a person who has the ability to produce a high income for himself that the USA can no longer tax.
- gsb 14y ago
  Non-resident aliens are specifically excluded from paying capital gains to the US. I wonder why? The US also refuses to collect information on income earned in the US by foreign residents (currently there are some efforts to change this, being obstructed by congress). Of course if you suggest that this means the US is a tax haven then you are in for an earful. Other, bad, countries are tax havens. Never the magnificent USA! A far more equitable solution to the Saverin 'problem' would be to apply CGT to ALL US-derived gains. Most countries do this. But that is unlikely to happen as it would reduce foreign investment...
hnwh 14y ago
"But this is clearly not foreign income" The IRS themselves disagree with you on that statement. http://www.irs.gov/publications/p54/ch04.html#en_US_2011_publink100047450 http://www.irs.gov/publications/p54/ch04.html#en_US_2011_pub...

nirvana 14y ago

Either he sold his Facebook stock before leaving, in which case he already paid taxes on it. Or he didn't, and since FB is an american company listed on an american exchange, when he sells any of it he'll still be subjected to long term capital gains, as any other non-US citizen who owns stock on a US exchange is. Thus the only thing to be upset about is that we have a person who has the ability to produce a high income for himself that the USA can no longer tax.

gsb 14y ago
Non-resident aliens are specifically excluded from paying capital gains to the US. I wonder why? The US also refuses to collect information on income earned in the US by foreign residents (currently there are some efforts to change this, being obstructed by congress). Of course if you suggest that this means the US is a tax haven then you are in for an earful. Other, bad, countries are tax havens. Never the magnificent USA! A far more equitable solution to the Saverin 'problem' would be to apply CGT to ALL US-derived gains. Most countries do this. But that is unlikely to happen as it would reduce foreign investment...

hnwh 14y ago

"But this is clearly not foreign income" The IRS themselves disagree with you on that statement. http://www.irs.gov/publications/p54/ch04.html#en_US_2011_publink100047450 http://www.irs.gov/publications/p54/ch04.html#en_US_2011_pub...