I don’t think this so-called “Ex-Patriate” bill is constitutional at all. Saverin has already renounced, so they cannot increase his tax bill by increasing capital gains for assets sold up to 10 years back or bar him entry any more than under what was already part of the Reed amendment.
To my mind the proposed bill is a Bill of Attainder and Ex Post Facto:
“Article 1 Section 9 USCONST “….No Bill of Attainder or ex post facto Law shall be passed…..”
“As James Madison wrote in, Federalist Number 44, “Bills of attainder, ex post facto laws, and laws impairing the obligations of contracts, are contrary to the first principles of the social compact, and to every principle of sound legislation. … The sober people of America are weary of the fluctuating policy which has directed the public councils. They have seen with regret and indignation that sudden changes and legislative interferences, in cases affecting personal rights, become jobs in the hands of enterprising and influential speculators, and snares to the more-industrious and less-informed part of the community.”
These two Senators are out of control. Their action is clearly intended as a bill of attainder against Saverin and others who have recently renounced. This limits economic freedom. Guess what, one may be forced to retain US citizenship, continue to pay double taxes, double report under FBAR, FATCA, not be certain to be able to travel to manage one’s business abroad or see relatives because the IRS might have found some little screwup (or screwed-up itself) and not be able to bank in a foreign country where business is being done due to FATCA scaring banks away from US customers.
What a double whammy: not only are those directly affected by the bill being done over, people will be afraid to invest in the US economy even more for free of being trapped. This will hurt the US economy. Those trapped in US citizeship that have the economic means will increasingly flee in protest with the capital they can free up by whatever means possible.
As many on the Isaac Brock Society and elsewhere have mentionned, there is an Iron Curtain falling around the shores of America. Are they going to start mining the border and shooting people that just want to leave because they are tired of this? HAVE U.S. LAWMAKERS FORGOTTEN THE LESSON OF THE COLD WAR, WHICH ENDED ONLY SOME 20 YEARS AGO ???
The Saverin fall-out, as expected, has begun:
The senators will call Saverin’s move an “outrage” and will outline their plan to re-impose taxes on expatriates like Saverin even after they flee the United States and take up residence in a foreign country. Their proposal would also impose a mandatory 30 percent tax on the capital gains of anybody who renounces their U.S. citizenship.
The plan would bar individuals like Saverin from ever reentering the United States again.
What does this mean? Can we never be free from these people? Is this implying that if you renounce citizenship now even with under the 2 million in assets that you will end up paying capital gains taxes anyway? And what is this about “re-imposing taxes on expatriates”? Does that mean that renouncing citizenship doesn’t do anything and…
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