Sen. Schumer is upset that the US may miss out on $67M in taxes due to Eduardo Saverin renouncing his naturalized US citizenship. So the Senator wants to place a huge tax on capital gains of anyone who renounces their citizenship and also ban them from re-entering the US. Take their money and kick them out the door. Sounds like the old scheme of rolling drunken sailors but being applied by the government.
Normally he would be able to return to the US on a tourist visa just like anyone else in the world who is not a terrorist or threat. This bill would permanently ban anyone who gives up their US citizenship from ever returning or visiting the US. It sounds like a punishment more fitting for a grade school playground than a nation. On the plus side, I doubt his bill will make it very far.
I'd love to see our nation switch to the FairTax but it's going to take a lot more work before that would happen.
I can understand how a citizen living abroad can find it difficult to still be a US citizen and still have to file US taxes as well as file taxes for where they are living. Filing taxes for one country is usually enough of a PIA for a person. Filing for two countries would be double the pleasure.
Last edit by azhiker96 on May 20, '12
: Reason: Adding a thought