Tag Archives: capital-gains

Eduardo Saverin, Facebook Co-Founder, Renounces U.S. Citizenship in Advance of IPO

Eduardo Saverin, the billionaire Facebook co-founder portrayed by Andrew Garfield in The Social Network , is no longer an American citizen. Saverin, 30, renounced the U.S. citizenship he gained as a teenager in advance of the company’s impending IPO, a move met with criticism. He’s accused of trying to skip out on taxes with the move, though the Brazilian-born resident of Singapore has done nothing illegal at any point. Eduardo Saverin co-founded Facebook at age 21, was forced out two years later, sued CEO Mark Zuckerberg and ultimately settled out of court. He was given a share of the company that left him phenomenally wealthy. His stake, 4 percent of the company, will most likely be worth more than $3 billion when Facebook goes public Friday. Hence his exit now. Saverin joins a growing number of people giving up U.S. citizenship , a move that can trim their tax liabilities when residing in lower-tax nations. Said Tom Goodman, a spokesman for Saverin, in an e-mailed statement: “Eduardo recently found it more practical to become a resident of Singapore since he plans to live there for an indefinite period of time.” He professes ignorance about his taxes and refuses to discuss his finances. “This had nothing to do with taxes,” he insisted. “I was born in Brazil, I was a U.S. citizen for about 10 years. I thought of myself as a global citizen.” Saverin renounced U.S. citizenship “around September”, according to his spokesman. Singapore doesn’t have a capital gains tax. It does tax income earned in that nation, as well as “certain foreign- sourced income,” according to reports. Saverin won’t escape all U.S. taxes. Americans who give up their citizenship owe what is effectively an exit tax on the capital gains from stock holdings. Renouncing your citizenship in advance of an IPO is “a very smart idea,” said one expert, “Once it’s public you can’t fool around with the value.” Saverin’s decision to leave could have been a wager that the cost of an exit tax now – 15 percent of whatever valuation he could get the IRS to agree to – would be far less than the 35 percent or more in estate tax his heirs would face.

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Eduardo Saverin, Facebook Co-Founder, Renounces U.S. Citizenship in Advance of IPO

George Stephanopoulos Parrots Democratic Talking Points on New GOP Pledge: They’re ‘Repealing Health Care’

Good Morning America’s George Stephanopoulos on Thursday offered up Democratic talking points as he discussed a new set of Republican promises, should the GOP win Congress. The skeptical host interviewed Representative Paul Ryan and repeated, “You heard the President. He said this is the exact same agenda as Republicans had before he came to office. How is it different?” In a tease for the segment, he spun, ” Republicans unveil their plan for America: Cutting taxes and repealing health care .” It may seem like a small distinction but Republicans oppose the new law, not the concept of Americans having health care. Stephanopoulos repeatedly grilled the GOP Congressman: “…The two central items in the agenda, are extending the tax cuts passed under President Bush. Repealing the health care law by President Obama. Those are going to cost at least $4 trillion over the next ten years. And your- your pledge doesn’t spell out anything close to paying for that $4 trillion.” He followed up by pressing, “But, you say a path to balance. But, you do concede that you do not have a plan to balance the budget. And you don’t pay for the tax cuts that you are extending?” Yet, when Stephanopoulos interviewed Barack Obama for 16 minutes on September 9 , he included several softball questions, such as this empathetic example on the minister who threatened to burn a Koran on 9/11: “I wonder what this must feel like from behind your desk. You’re President of the United States. You have to deal with the fallout. And here’s a pastor who’s got 30 followers in his church. Does it make you feel helpless or angry?” A transcript of the September 23 segment, which aired at 7:06am EDT, follows: GEORGE STEPHANOPOULOS: Let’s turn now to one of the architects of the Republican agenda, Congressman Paul Ryan of Wisconsin, a ranking Republican on the House budget committee. Good morning, Congressman. REP. PAUL RYAN: Hey, good morning, George. STEPHANOPOULOS: You heard the President. He said this is the exact same agenda as Republicans had before he came to office. How is it different? RYAN: Well, first of all, cutting spending, creating jobs and putting the policy of economic growth in place, and cleaning up the way Congress works is not only standing in stark contrast to this Congress and this President. But, actually, George, it stands a bit in stark contrast to way Republicans conducted ourselves a decade ago. We need to own up to the fact that when we were in the majority, we spent too much money. We lost our way. We have got to get that back. We are not here offering a plan to reinvent America. We are trying to reclaim our country by rededicating ourselves to the timeless principles that made us exceptional. These are the basic building blocks to get us on the right track. The first steps to get this country on the right track. STEPHANOPOULOS: Yet, Congressman, the two central items in the agenda, are extending the tax cuts passed under President Bush. Repealing the health care law by President Obama. Those are going to cost at least $4 trillion over the next ten years. And your- your pledge doesn’t spell out anything close to paying for that $4 trillion. RYAN: We’d put 1.3 trillion in cuts right there as well. But the President is also proposing $3 trillion of those $3.7 trillion in tax cuts be extended. So, it’s not as if the President and the Democrats aren’t saying extend some of them. We’re saying- STEPHANOPOULOS: But, how are you going to pay for the $4 trillion, if you’re going to reduce the spending? RYAN: Well, I brought a budget to the floor that reduced $4.8 trillion in spending, which would have more than compensated for these tax cuts. The point is, George, raising taxes on successful, small businesses, which these tax increases would hit 50 percent of all small business income, 70 percent of our jobs come from small businesses. It is not a good idea in this economy, to raise these kind of taxes. Even some of the President’s own economic advisers are suggesting, we should not have tax increases occur in January. What- The problem we have right now is jobs, George. We need the economy growing. We need job creations. Taxing capital gains, taxing dividends taxing small businesses will hurt us from creating jobs. Mark Zandi, Peter Orszag. Even some of the President’s own advisors are suggesting that. So, we’re saying, not only keep taxes low, but focus on spending. Cut spending. Control spending. Get the budget on the path to balance. We will begin with that. STEPHANOPOULOS: But, you say a path to balance. But, you do concede that you do not have a plan to balance the budget. And you don’t pay for the tax cuts that you are extending? RYAN: Well, we can pay for the tax cuts. I have provided budgets that do that in the past. STEPHANOPOULOS: But, the rest of the Republicans aren’t signing on to it? RYAN: No. That’s the road map which is quite different. What I’m saying is we have a plan to get this country back on track. We want to cut and control spending. The deficit is such a mess right now. It’s going to take time to balance the budget. But, what is the current government doing? Their making it worse. The President has added a budget that doubles our debt in five years. And triples it in ten years. We want to go in a different direction. So, we don’t want to balance the budget by raising taxes. We want to balance a budget by controlling spending. ‘Cause, after all, that’s the real source of our problem. STEPHANOPOULOS: You also talk about cleaning up Congress. You’re taking some heat, some surprising heat from conservatives. Erick Erickson of RedState.com says- hits you were not taking on earmarks, for not banning earmarks. He says “The lack of an earmarks ban is terrible. Cutting off the gateway drug to big government is important.” Your response? RYAN: I agree. We’ve already banned earmarks. That’s already in the Republican platform. STEPHANOPOULOS: Only for your conference. Not for the House overall. RYAN: Republicans- We’ve going to continue this earmarks ban. We’ve already done the earmark ban. So, it’s something we’ve already initiated it in our own volition within our own conference. It’s something we’re intending on continuing. That’s why it’s not new pledge. STEPHANOPOULOS: So, you’ve got the pledge. What will you pledge to pass in the first year, if Republicans take control of the house? RYAN: Right. So, this is something we could pass tomorrow. This is a governing agenda that we’re saying if we got in control of Congress tomorrow, here’s what we would do. And there’s dozens of pieces of legislation here we’re talking about. First of all, the health care bill, we think is a disaster. It’s making the deficit worse. That’s according to the President’s actuary. It’s making health care go up. We would replace this health care law with consumer-directed health care that actually gets affordable health care to everybody, regardless of preexisting condition. STEPHANOPOULOS: So, that is number one. Okay, Congressman- RYAN: We would cut spending, right away. There’s lots of things we would do. We would rescind TARP. We would rescind unspent stimulus. We would do a federal hiring freeze. That can get you 1.3 trillion in spending cuts. And we would prevent these massive tax increases from hitting our economy January 1st so that we can keep job creation going. We’re trying to remove uncertainty so the economy can grow. There’s a big uncertainty problem. Businesses aren’t hiring because of all this government uncertainty. We want to address that. STEPHANOPOULOS: Big agenda for January 1st. Thank you very much, Congressman.

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George Stephanopoulos Parrots Democratic Talking Points on New GOP Pledge: They’re ‘Repealing Health Care’

AP Shocker: Bush Tax Cuts Didn’t Just Help The Rich

For almost ten years, the Bush tax cuts have been depicted by media as only helping rich people. Now, with them set to expire, and a Democrat in the White House desperately needing a stronger economy to help him and his Party’s political fortunes, the Associated Press is telling readers the truth with the following headline: Expiring Tax Cuts Hit Taxpayers at Every Level     If you think that’s amazing, wait until you see the contents : A typical family of four with a household income of $50,000 a year would have to pay $2,900 more in taxes in 2011, according to a new analysis by Deloitte Tax LLP, a tax consulting firm. The same family making $100,000 a year would see its taxes rise by $4,500. Wealthier families face even bigger tax hikes. A family of four making $500,000 a year would pay $10,800 more in taxes. The same family making $1 million a year would get a tax increase of $53,200. The estimates are based on total household income, including wages, capital gains and qualified dividends. The estimated tax bills take into account typical deductions at each income level. Okay, so putting this in reverse, doesn’t that mean that when these tax cuts were first implemented – you know, when that awful Republican named George W. Bush was president! – a typical family of four with a household income of $50,000 a year saved $2,900 per annum as a result ? And a family making $100,000 a year saved $4,500?  Gosh, that means these tax cuts weren’t just for the rich as virtually every media outlet in America has been claiming since they were first proposed. Makes you wonder how such organizations can stay in business when they do such a terrible job. 

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AP Shocker: Bush Tax Cuts Didn’t Just Help The Rich

Newsweek Mocks ‘Poor Little CEO’s,’ Attacks Private Sector

The news media love to bash businesses and support regulation, so Newsweek’s mockery of the CEO class and claims that they accomplished nothing between 2001 and 2009 shouldn’t be a surprise. In his July 20 ” Poor Little CEO’s ” story, Newsweek’s Daniel Gross, known for his ” tea bagging ” comments and staunch defense of Obama , derided a July 12 “Jobs for America” summit held by the U.S Chamber of Commerce, the Business Roundtable, and the National Federation of Independent Business. Gross mocked the jobs summit saying it was “a little like BP holding a deepwater-drilling safety summit.” He also blamed corporate America for a “lost decade” that ended with “the deepest recession since the Great Depression.” “Between 2001 and 2009, corporate America designed the playing field to its specifications – easy money from the Federal Reserve; lower taxes on capital gains, dividends, and income; an administration that let industry essentially write its own regulations,” Gross claimed. On the contrary, the Bush administration passed the Sarbanes-Oxley Act which policed mark-to-market accounting with criminal penalties, hardly a regulation “designed” to corporate America’s “specifications.” As for the “lost decade,” the Bush Administration oversaw 52 months of job creation in a decade despite constant media assault. Gross criticized both the Bush and Obama administrations for being “remarkably solicitous” to big business and for their regulatory policies not going far enough: “What’s more, many of the policies recently put in place are quite friendly to big business.” As an example he cited one company, General Electric, ignoring the many other businesses threatened by Obama’s policies. Friendly? A financial reform bill that includes a consumer financial protection bureau and the Volcker Rule is not “friendly.” Additionally, President Obama has hardly been “friendly” to businesses, from forcing the ouster of General Motors’ CEO to his constant anti-business rhetoric .

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Newsweek Mocks ‘Poor Little CEO’s,’ Attacks Private Sector

Budget 2010: VAT to rise, cigarettes and alcohol unaffected

The government has unveiled the latest budget cuts and called the measures “tough but fair”. The BBC says it's “the biggest package of tax increases and spending cuts in a generation”, so how will this year's budget affect you? Below are some of the changes coming into force. For full details, have a look at the Treasury's website or the BBC. Taxes: From January, VAT will rise to 20%, generating

A Plague Upon The World: The USA is a “Failed State”

I http://www.globalresearch.ca/index.php?context=va&aid=19458 Interview with Dr. Paul Craig Roberts, former Assistant Secretary US Treasury, Associate Editor Wall Street Journal, Professor of Political Economy Center for Strategic and International Studies Georgetown University Washington DC. Question: Dr. Roberts, the United States is regarded as the most successful state in the world today. What is responsible for American success? Dr. Roberts: Propaganda. If truth be known, the US is a failed state. More about that later. The US owes its image of success to: (1) the vast lands and mineral resources that the US “liberated” with violence from the native inhabitants, (2) Europe’s, especially Great Britain’s, self-destruction in World War I and World War II, and (3) the economic destruction of Russia and most of Asia by communism or socialism. After World War II, the US took the reserve currency role from Great Britain. This made the US dollar the world money and permitted the US to pay its import bills in its own currency. World War II’s destruction of the other industrialized countries left the US as the only country capable of supplying products to world markets. This historical happenstance created among Americans the impression that they were a favored people. Today the militarist neoconservatives speak of the United States as “the indispensable nation.” In other words, Americans are above all others, except, of course, Israelis. To American eyes a vague “terrorist threat,” a creation of their own government, is sufficient justification for naked aggression against Muslim peoples and for an agenda of world hegemony. This hubristic attitude explains why among most Americans there is no remorse over the one million Iraqis killed and the four million Iraqis displaced by a US invasion and occupation that were based entirely on lies and deception. It explains why there is no remorse among most Americans for the countless numbers of Afghans who have been cavalierly murdered by the US military, or for the Pakistani civilians murdered by US drones and “soldiers” sitting in front of video screens. It explains why there is no outrage among Americans when the Israelis bomb Lebanese civilians and Gaza civilians. No one in the world will believe that Israel’s latest act of barbarity, the murderous attack on the international aid flotilla to Gaza, was not cleared with Israel’s American enabler. Question: You said that the US was a failed state. How can that be? What do you mean? Roberts: The war on terror, invented by the George W. Bush/Dick Cheney regime, destroyed the US Constitution and the civil liberties that the Constitution embodies. The Bill of Rights has been eviscerated. The Obama regime has institutionalized the Bush/Cheney assault on American liberty. Today, no American has any rights if he or she is accused of “terrorist” activity. The Obama regime has expanded the vague definition of “terrorist activity” to include “domestic extremist,” another undefined and vague category subject to the government’s discretion. In short, a “terrorist” or a “domestic extremist” is anyone who dissents from a policy or a practice that the US government regards as necessary for its agenda of world hegemony. Unlike some countries, the US is not an ethic group. It is a collection of diverse peoples united under the Constitution. When the Constitution was destroyed, the US ceased to exist. What exists today are power centers that are unaccountable. Elections mean nothing, as both parties are dependent on the same powerful interest groups for campaign funds. The most powerful interest groups are the military/security complex, which includes the Pentagon, the CIA, and the corporations that service them, the American-Israel Public Affairs Committee, the oil industry that is destroying the Gulf of Mexico, Wall Street (investment banks and hedge funds), the insurance companies, the pharmaceutical companies, and the agri-companies that produce food of questionable content. These corporate powers comprise an oligarchy that cannot be dislodged by voting. Ever since “globalism” was enacted into law, the Democrats have been dependent on the same corporate sources of income as the Republicans, because globalism destroyed the labor unions. Consequently, there is no difference between the Republicans and Democrats, or no meaningful difference. The “war on terror” completed the constitutional/legal failure of the US. The US has also failed economically. Under Wall Street pressure for short-term profits, US corporations have moved offshore their production for US consumer markets. The result has been to move US GDP and millions of well-paid US jobs to countries, such as China and India, where labor and professional expertise are cheap. This practice has been going on since about 1990. After 20 years of offshoring US production, which destroyed American jobs and federal, state and local tax base, the US unemployment rate, as measured by US government methodology in 1980, is over 20 percent. The ladders of upward mobility have been dismantled. Millions of young Americans with university degrees are employed as waitresses and bartenders. Foreign enrollment comprises a larger and larger percentage of US universities as the American population finds that a university degree has been negated by the offshoring of the jobs that the graduates expected. When US offshored production re-enters the US as imports, the trade balance deteriorates. Foreigners use their surplus dollars to purchase existing US assets. Consequently, dividends, interest, capital gains, tolls from toll roads, rents, and profits, now flow abroad to foreign owners, thus increasing the pressure on the US dollar. The US has been able to survive the mounting claims of foreigners against US GDP because the US dollar is the reserve currency. However, the large US budget and trade deficits will put pressures on the dollar that will become too extreme for the dollar to be able to sustain this role. When the dollar fails, the US population will be impoverished. The US is heavily indebted, both the government and the citizens. Over the last decade there has been no growth in family income. The US economy was kept going through the expansion of consumer debt. Now consumers are so heavily indebted that they cannot borrow more. This means that the main driving force of the US economy, consumer demand, cannot increase. As consumer demand comprises 70% of the economy, when consumer demand cannot increase, there can be no economic recovery. Continued at: http://www.globalresearch.ca/index.php?context=va&aid=19458 added by: Dagum