SENATORS INTRODUCE ‘EX-PATRIOT ACT’ IN RESPONSE TO FACEBOOK FOUNDER’S TAX AVOIDANCE

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Facebook co-founder Eduardo Saverin renounced his American citizenship ahead of Facebook’s initial public offering, a move that will save him about $67 million in taxes. Today, Sens. Chuck Schumer (D-NY) and Bob Casey (D-PA) introduced the “Expatriation Prevention by Abolishing Tax-Related Incentives for Offshore Tenancy” Act — or Ex-Patriot Act— to prevent this sort of tax avoidance. Under the bill, former citizens “will besubject to 30% capital gains tax on future U.S. investments no matter where they live.” Of course, Saverin could have bigger problems, as he may not be able to reenter the U.S. on account of his decision. And Saverin is certainly not the only person connected to Facebook who is planning on avoiding taxes.