{"id":4950,"date":"2012-05-21T08:58:37","date_gmt":"2012-05-21T13:58:37","guid":{"rendered":"http:\/\/streamingradioguide.com\/startingover\/?p=4950"},"modified":"2012-05-21T08:58:37","modified_gmt":"2012-05-21T13:58:37","slug":"property-of-us-government","status":"publish","type":"post","link":"https:\/\/streamingradioguide.com\/startingover\/?p=4950","title":{"rendered":"Property of US Government"},"content":{"rendered":"

“Confiscation of the possessions of all emigrants and rebels against the majority of the people.” – Necessary Measures to complete the Communist Revolution<\/a><\/p>\n

An emigrant is of course a person who tries to leave a country, taking his property with him, facing the possibility of government ending all property rights.<\/p>\n

A number of far left Democrats – particularly Barney Frank (D-MA) have had this item on their political agenda for a long time.\u00a0\u00a0 He wants a tax applied to people who wish to take their money and leave the United States and “renounce” their US Citizenship – the theory being that the United States has a right to your income for the rest of your life even if you no longer live in the United States and no longer derive your income from anything in the United States.<\/p>\n

The current position of the IRS is that if you are able to renounce your citizenship are here<\/a>. \u00a0 This also applies to long term non-residents who were never US citizens but decide to leave the country.<\/p>\n

The main provision since 2008 is that any assets you own are “Marked to Market” and you owe tax on the profit, even if you don’t sell the asset.\u00a0\u00a0 Say you’re a silicon valley mogul and you own stock options that lets you buy 1 million shares at $5 a share and that stock is worth $20 a share.\u00a0\u00a0 You owe taxes on $15 million if you leave the country, since you might in the future exercise those options and make a $15 million profit.\u00a0\u00a0 They also have to prove they paid their taxes for the 5 years preceding when they leave and are not just fleeing to avoid paying taxes they owe.<\/p>\n

Prior to 2004, if the IRS determined that one of your main reasons for reason was to avoid future taxes, the IRS considered your income for the 10 years after you left to still be taxable income to the US Government.<\/p>\n

Senator Chucky Schumer is drooling at the prospect of getting this tax loophole closed and impose a 30% “exit tax” – and John Boehner is right there saying “Great idea – let me in, too!”<\/p>\n

http:\/\/thehill.com\/blogs\/blog-briefing-room\/news\/228473-boehner-new-legislation-punishing-tax-dodgers-for-renouncing-citizenship-unnecessary<\/a><\/p>\n

The current focus on this is caused by 30 year old Eduardo Saverin, the co-founder of Facebook that went public, and he renounced his citizenship in anticipation of the large profits from the IPO.<\/p>\n

Eduardo Saverin was born in Brazil and moved to Miami as a child, eventually getting US Citizenship in 1998, then going to Harvard – and has been living in Singapore since 2009.\u00a0 Hs moved on to other ventures like NetSwipe, which allows secure online credit card transaction processing where the customer holds their credit card in front of their smartphone or web camera.<\/p>\n

His position appears to be that he owes exit tax as of the date he gave up the citizenship (in September 2011) and that he intends to pay that tax (around $365 million) – but others think he should pay taxes on the post-IPO “profit”.\u00a0 Be careful what you wish for – if the IPO crashes, that could backfire on the “Tax the Rich” vultures.<\/p>\n

So how does the Global Economy imposes taxes on people who can create their ideas anywhere, including places like Singapore that have no tax on capital gains?<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

“Confiscation of the possessions of all emigrants and rebels against the majority of the people.” – Necessary Measures to complete the Communist Revolution An emigrant is of course a person who tries to leave a country, taking his property with … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,104],"tags":[],"class_list":["post-4950","post","type-post","status-publish","format-standard","hentry","category-2012-election","category-global-finances"],"_links":{"self":[{"href":"https:\/\/streamingradioguide.com\/startingover\/index.php?rest_route=\/wp\/v2\/posts\/4950","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/streamingradioguide.com\/startingover\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/streamingradioguide.com\/startingover\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/streamingradioguide.com\/startingover\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/streamingradioguide.com\/startingover\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4950"}],"version-history":[{"count":2,"href":"https:\/\/streamingradioguide.com\/startingover\/index.php?rest_route=\/wp\/v2\/posts\/4950\/revisions"}],"predecessor-version":[{"id":4952,"href":"https:\/\/streamingradioguide.com\/startingover\/index.php?rest_route=\/wp\/v2\/posts\/4950\/revisions\/4952"}],"wp:attachment":[{"href":"https:\/\/streamingradioguide.com\/startingover\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4950"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/streamingradioguide.com\/startingover\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4950"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/streamingradioguide.com\/startingover\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4950"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}