I have been a lifelong member of the Republican Party. I believe that smaller government and a growing economy is best for America today, and into the future. Taxes, at all levels of the socioeconomic ladder, directly impact disposable income hurting consumption and capital formation. However, there are elements in our society that challenge those believes. I’d like to share a story.
I recently found out that one of Facebook’s founders, Eduardo Saverin renounced his U.S Citizenship in favor of a Malaysian citizenship. As you know, Mr. Saverin, by way of a legal settlement, was given 5% of Facebook. His position translates to, at the high-end of the IPO valuation, about $3.84 billion. It would appear that Mr. Saverin’s decision to renounce his U.S. Citizenship was driven by the fact Singapore does not have a capital gains tax. In the U.S., he would incur a liability of 33% at worst and 15% at best.
Having said that, I don’t begrudge Mr. Saverin’s success even if it was the results of a lawsuit, but I am sickened by his vulgar display of avarice. We have thousands of young veterans, his peers, coming home without limbs and in various states of disarray. Many will never see their children grown. Eighty percent or more of our military men and women are Facebook subscribers. Their lives, their friend’s and family’s lives have contributed to Facebook’s content, which gives Facebook its economic value. These young men and women have responded to our nation’s call to defend the country from terror and tyranny – a benefit that has accrued to all Americans to include Mr. Saverin. It would appear that Mr. Saverin values their sacrifices less than avoiding capital gains. It sickens me.
I sincerely hope his actions do not become a reason to eliminate capital gains. These young men and women need all of our help and support to get back on their feet. Getting their lives in order is worth every penny of tax dollars spent. Mr. Saverin’s actions quite frankly disgust me.