Farhad Manjoo has a piece over at Pando Daily entitled “What Eduardo Saverin Owes America”. He gives a list of five specific items: his safe childhood, his erstwhile friendship with Zuckerberg, Harvard, the Internet, and the justice system. This made me think of the obvious counterfactual scenario: what if Eduardo Saverin’s family had moved to Europe instead to escape the threat of kidnappings in São Paulo, and he’d come to Harvard as a visa student? Four out of Manjoo’s five points still apply, but Saverin would face a far lower tax bill. Would Saverin owe any less of a moral debt to America? And what does the resulting tax situation have to say about the justice of the U.S.’ peculiar practise of taxing overseas citizens wherever we go?
Here is the link to Matias Ramos blog post at the Institute for Policy Studies, The One Percent Deports Itself. He did not respond to my earlier comment, so I’ve written an e-mail in hopes to get some kind of concession.
Dear Mr. Ramos:
I commented at your blog. I took exception to your portrayal of those who relinquish their citizenship as the 1% deporting themselves. This is incorrect and a clear mischaracterization of the facts. I know many people who have renounced in the last couple of years. These are not wealthy people–indeed, some of them are even what you would call lower middle class.
Here is a Washington Post article that just broke that seems to contain a lot of text that we have already seen at sources like Bloomberg and WSJ. Nothing really that new.
The comments page is interesting: there is one remark mentioning the fact that FATCA-level reporting is not required of American banks. Perhaps IBS members could put some comments there.