Senators Chuck Schumer and Bob Casey target those who struck it big on Facebook
By Adam Bitely — If you are a successful businessman in America and are looking for ways to escape the ever rising tax rates, you better watch out for Senators Chuck Schumer (D-NY) and Bob Casey (D-PA). They will hunt you down and shake the money out of your pockets no matter where you try to hide.
Last week, Facebook co-founder Eduardo Saverin made headlines when he denounced his U.S. citizenship to head for Singapore, a country that would tax him considerably less than the U.S. would. With the Facebook IPO today, Saverin would have had as much as $100 million taken from him by the federal government.
This is where two typically greedy Senators step in to wet their beak.
Schumer and Casey have written up legislation titled “Expatriation Prevention by Abolishing the Tax-Related Incentives for Offshore Tenancy Act” (the acronym is Ex-PATRIOT act…) to get the money from Saverin, as well as others who have acted similarly, into the hands of the federal government.
If Congress seriously considers this legislation, this could lead to a Smoot-Hawleyesque flight of capital out of the United States. Particularly, we could see other folks like Saverin leave, who came from abroad to pursue their dreams in a land of opportunity and excelled beyond anyone’s wildest dreams. However the greedy government, like the common mob boss, is stepping in and demanding tribute or else face being jailed.
Schumer and Casey are actively creating an incentive to start companies elsewhere. While the Obama administration travels the country touting job creation, the government officials in Washington are doing just the opposite.
On the other hand, countries like Singapore are standing out as a beacon for the entrepreneur. Singapore offers an environment friendly for business, while Washington spends time plotting and scheming how they will shake a few extra coins out of businesses. While the U.S. is positioned to have its capital gains tax rate increase to near 24%, and while Obama calls for a 30% rate, it’s no wonder that people like Saverin would go elsewhere.
If Schumer and Casey were truly interested in a boom in revenues they would lower barriers to entry, like taxes, that will encourage people to stay in America and run their businesses here. Treating businessman like common criminals because they are successful will only result in fewer people willing to do business. Schumer and Casey know that, but when the problems from such actions take place, they will be long out of Washington.
What Schumer and Casey have done is create a modern form of slavery—either you pay the federal government no matter where you live or are a citizen, or spend your days in jail.
Adam Bitely is the Editor-in-Chief of NetRightDaily.com. You can follow Adam on Twitter at @AdamBitely.
