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A Proposed Tax Law to Get One Man’s Money — and Anyone Like Him

Written by Gary North on May 21, 2012

Liberals want our money. They want to make sure no one with money can escape. They are willing to write a bill that will close “loopholes,” including the loophole of renouncing U.S. citizenship to get away.

Among large nations, only the USA taxes its citizens who live outside the country. The only way to escape taxes is to give up your citizenship.

A man recently did this. He is an investor in Facebook. Before the IPO was announced, he gave up his citizenship and became a citizen of Singapore. That’s legal. There is no capital gains tax in Singapore.

Senator Church Schumer of New York and another Democrat Senator have introduced a bill: the “Expatriation Prevention by Abolishing Tax-Related Incentives for Offshore Tenancy” Act. That’s a mouthful. It’s a mouthful with a purpose. The Senators are sending a message with a catchy acronym, the “Ex-Patriot” Act. Get it? If you give up your citizenship, you’re no longer a patriot.

Not only does it imposes taxes on anyone who does this, it forbids the person from ever entering the nation again.

This is right out of the short story millions of us were forced to read in high school: Nathan Hale’s “The Man Without a Country.” It was written in during the Civil War. It was published in The Atlantic in December 1863. It was about a man who was tried for treason in 1807, as part of Aaron Burr’s trial for treason. (In real life, Burr was acquitted.) He verbally says he hopes he will never hear about the United States again. The judge sentences him to life in prison on U.S. ships, transferred back and forth, mid-ocean. No one is to mention the USA to him again. He never sees family or friends again.

Schumer wants to get as close to that story’s sanction against treason as he can.

But renouncing citizenship is not treason. It’s legal. Not if Chuck Schumer gets his way, it will still be legal, but it won’t be tax-free.

But the capital gains tax isn’t 30% . . . not yet, anyway. So, the law will discriminate against this one form of tax planning.

That’s because it’s the worst form of tax planning from a liberal Democrat’s point of view: permanent tax relief from the IRS. This is an outrage in their view.

At a press conference, Schumer and Bob Casey of Pennsylvania specifically identified their target: Eduardo Saverin.

How much tax money is involved? $67 million. In a nation with an annual budget deficit of $1.2 trillion, this is peanuts. But, symbolically speaking, the two Democrats see it as an insult to the Internal Revenue Service. Such an insult is not to be tolerated.

The bill, if passed, will impose a 30% capital gains tax on anyone who renounces his citizenship.

In 2011, 1700 Americans renounced their citizenship: hardly a large number. But Schumer is not willing to let anyone get away. The long arm of the IRS extends across jurisdictions.

Continue Reading on abcnews.go.com

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10 thoughts on “A Proposed Tax Law to Get One Man’s Money — and Anyone Like Him

  1. Max Penn says:

    I find this a bit funny, The Nazi's did this back in the 30's to keep the rich Jews from hitting the road with their money out of Germany. I find it odd that Senator Chuck Schumer, a Jew would pull the same deed on Americans. Is it safe to say the Democrats love money more then America?

  2. Is it safe to say Schumer is a Kapo from WW II? Is it safe to say Schumer is really "Chucky the Doll" of horror movie fame?

  3. Good grief. Is Schumer using Manifesto of the Communist Party as a playbook to prove his pettiness?

    Also, it's by the way that Schumer is not a liberal but radically illiberal.

  4. Prison country

  5. Capt. A. says:

    THE TRICKLE will turn into a torrent. Rich individuals are assessing the VALUE of U.S. citizenship (as with anything else) and will conclude it provides a negative return. They'll leave the collective's "Submit and Obey" legalized plunder.
    I left 35-years ago, renounced citizenship and I've never looked back. I gained unimaginable freedom, liberty and privacy… As far as barring return to U.S. soil – life is too short to spend the only life you will ever have, a tax slave! You can keep it! Puke on the collectives' welfare/warfare system.

    C'est la guerre,
    Capt. A.
    Principauté de Monaco
    UTC +2:00 CET

  6. You could start an equally provocative and equally true article like this:

    "Conservatives want our money. They want to make sure no one, even those with little money left, can escape. They are willing to write a bill that will open many loopholes, including ones that squeeze the money from your very bones."

  7. ProundPatriotToo says:

    One thousand and seven yawn moment. This is what the leftist world is all about. They have been this way from the get go. "We will reach into your pockets, but don't you dare touch our money; because it's only f-a-i-r. The old double standards strikes again.
    Roger, over and out. Yeppers.

  8. Shane – Schumer is a L-I-B-E-R-A-L.

  9. LOL how so? Democrats are the ones that are giving our money away and making up more and more entitlement programs to spend even MORE on. They need to rob someone in order to give it to someone that doesn't EARN their own money.

  10. Katchaturian says:

    Schumer is a selfseving NY crook. Period. Ain't he sweet lookin'though. Methinks they couldn't stand him in Israel