The coming IPO: Facebook co-founder Saverin to be blasted by senators

May 17
10:41 AM 2012

Facebook co-founder Eduardo Saverin, who owns about 2% of the company, said he would relinquish his U.S. citizenship. This angered two U.S. senators.

Charles Schumer (D. N.Y.) and Bob Casey (D. Penn.) plan to have a press conference today to “unveil a comprehensive plan” that can re-impose taxes on expatriates like Saverin, impose a mandatory 30% tax on the capital gains of anyone who renounces U.S. citizenship, and even stop them from reentering U.S. again.

Saverin said the reason he is giving up U.S. citizenship is not about taxes but U.S. citizenship makes it difficult to live and invest overseas.

But the timing of giving up U.S. citizenship is sensitive with Facebook’s coming IPO, as doing so can avoid taxes and save an estimated $67 million.

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