Monday, May 14, 2012

It's the regulations

Think of how many new businesses (and new jobs) that newly-made billionaire and Facebook co-founder Eduardo Saverin could create with his fortune. The US is less likely to get those jobs now that he has renounced US citizenship. Although many speculated that that move was due to US taxes alone, Saverin has stated it was the regulations:
Saverin spokesman Tom Goodman said Sunday his renunciation was prompted not by tax considerations but by U.S. rules that make it more difficult for U.S. citizens to live and invest overseas.

“U.S. citizens are severely restricted as to what they can invest in and where they can maintain accounts,” said spokesman Tom Goodman. “Many foreign funds and banks won’t accept Americans. This was a financial rather than a tax motive.”

The problem with foreign banks accepting US funds was a result of the Foreign Account Tax Compliance Act (FATCA) which was part of the Obama-Reid-Pelosi-era Hiring Incentives to Restore Employment (HIRE) Act.

Yes, a law entitled "Hiring Incentives to Restore Employment Act" will drive jobs overseas. Isn't liberalism wonderful?

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