By the Left Coast Rebel
Last week Facebook co-founder Eduardo Saverin announced that he was going to give up his US citizenship and become a citizen of Singapore. Saverin made the announcement just weeks before Facebook goes public, potentially saving the 30-year-old 5% Facebook stakeholder untold sums of IRS levies.
I see Saverin's move as one that perfectly fulfills Ayn Rand's prophecy of the productive class essentially going on strike against increasing taxes and regulations in her epic dystopian Atlas Shrugged novel.
Forbes' John Tamny sees Saverin's move as a positive that just may wake more Americans up to our corrupt system...
Saverin’s essential maneuver will at first glance hopefully get Americans thinking once again about our wrongheaded system of taxation. As it stands now, Americans, through taxes levied on income and capital gains, are explicitly forced to “prove” their income to the IRS.
Think about the above for a moment. A nation founded on skepticism about politicians and government now has as one of its most powerful institutions a revenue agency meant to badger its citizens about how much they owe a government utterly contemptuous of constitutional limits. To this insatiable beast, Saverin is apparently saying no. Good for him!
Saverin’s flight from the U.S. is yet another reminder of the superiority of a national consumption tax that in a perfect world would be implemented in concert with the abolition of the I.R.S. A limited federal government is a difficult concept to achieve so long as that same government can grant itself the legal right to tax a certain portion of our incomes. When individuals resist governmental hubris, we should exalt their actions.
Ideally Saverin’s situation will remind Americans that the feds work for us, and to ensure that they seek to serve our needs rather than bludgeon us for revenue that they can dole out to favored constituents, we’ll implement a consumption tax through which we can limit what we hand over to them to spend. And if the tax is regressive or hits low incomes at the same percentage as high ones, all the better. Everyone should know intimately the cost of government.
Saverin’s departure is also a reminder to politicians that while they can obnoxiously decree what percentage of our income we’ll hand them in taxes, what they vote for won’t necessarily reflect reality. Indeed, as evidenced by Saverin’s renunciation, tax rates and collection of monies on those rates are two different things. Assuming nosebleed rates of taxation were a driver of Saverin’s decision, politicians will hopefully see that if too greedy about collecting the money of others, they’ll eventually collect nothing.
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