Anything for a buck, right? How about for billions of bucks? Ahead of Facebook's initial public offering (IPO), co-founder Eduardo Saverin has renounced his U.S. Citizenship, choosing Singapore as his residence. The tax savings of such a move will be enormous.
Eduardo Saverin, the billionaire co- founder of Facebook Inc. (FB), renounced his U.S. citizenship before an initial public offering that values the social network at as much as $96 billion, a move that may reduce his tax bill.
Facebook plans to raise as much as $11.8 billion through the IPO, the biggest in history for an Internet company. Saverin's stake is about 4 percent, according to the website whoownsfacebook.com. At the high end of the proposed IPO market capitalization, that would be worth about $3.84 billion. His holdings aren't listed in Facebook's regulatory filings.
Saverin, 30, joins a growing number of people giving up U.S. citizenship ahead of a possible increase in tax rates for top earners. The Brazilian-born resident of Singapore is one of several people who helped Mark Zuckerberg start Facebook in a Harvard University dormitory and stand to reap billions of dollars after the world's largest social network holds its IPO.
The United States has the highest corporate tax rate in the world as shown in this March 2012 article. Obama want's to raise it even higher in the name of 'fairness.'
As of Sunday, April first, the United States will have the highest corporate tax rate in the world. This new record is not something that would make most Americans proud.
We take the title as Japan cuts its tax rate by five percent. America’s business tax rate now tops out at 35 percent. Add state taxes and American job creators face a median rate of 39.2 percent.