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Senators to Unveil the 'Ex-Patriot Act' to Respond to Facebook's Saverin's Tax 'Scheme' ... Sen. Chuck Schumer, D-N.Y., has a status update for Facebook co-founder Eduardo Saverin: Stop attempting to dodge your taxes by renouncing your U.S. citizenship or never come to back to the U.S. again ... At a news conference this morning, Sens. Schumer and Bob Casey, D-Pa., will unveil the "Ex-PATRIOT" – "Expatriation Prevention by Abolishing Tax-Related Incentives for Offshore Tenancy" – Act to respond directly to Saverin's move, which they dub a "scheme" that would "help him duck up to $67 million in taxes." – ABC
Dominant Social Theme: These taxes are very important in the scheme of things. The US would collapse without them.
Free-Market Analysis: You would think with all the economic chaos swirling about that those who make the laws and levy taxes would be somewhat apologetic. Not Senator Chuck Schumer, though. He wants to make it illegal for a US citizen to take advantage of the tax laws of other countries.
How he is going to do this is somewhat unclear. The reason people renounce citizenship is to remove themselves from the laws of one country and place themselves under the laws of another.
The US cannot simply proclaim that its laws supersede those of the country that the individual is moving to. That's the whole point, after all. It's a simple process and one that is built out of a kind of force.
One removes oneself from one forcible regime and relocates to a slightly less objectionable one. As the US generally becomes more objectionable more and more US citizens are doing this.
Actually the term "US" is a misnomer. Those behind this are the power elite, a group of dynastic families apparently and their enablers and associates that want to run the world. They are doing their best to create global governance and one part of that process is seamless taxation.
The bizarre passport and immigration laws that have been imposed around the world are part of this process. As are currency controls. The entire rigmarole is less than 100 years old.
As is the rest of the superstructure of world government. People pooh-pooh the idea of an organized conspiracy along these lines. How come, then, all of this has arisen – as Athena sprang from the forehead of Zeus – in only 100 years or so?
The same with central banking. A hundred years ago there were few central banks. Today there are 150 of them. Most are monopoly-fiat, private-public banks that draw their credibility from the governments they purport to fund.
Of course, this brings up another issue, which is the inconvenient point that governments don't need taxes anymore. Why do you need to extract funds from citizens when you print all the money you want anyway?
But that's not how officialdom seems to look at it. For the top officials in most countries, especially Western-influenced ones, taxes are a revenue source of great import. Here's more from the article above:
In September 2011, Saverin relinquished his U.S. citizenship before the company announced its planned initial public offering of stock, which will debut this week. The move was likely a financial one, as he owns an estimated 4 percent of Facebook and stands to make $4 billion when the company goes public. Saverin would reap the benefit of tax savings by becoming a permanent resident of Singapore, which levies no capital gains taxes.
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.
Again, the issue (to begin with anyway) is how Saverin is to be impelled to pay his taxes abroad. Presumably, the penalty will be that he won't be able to return to the US.
But that's the least of it. US officials are already trying to get foreign banks to become their tax collectors. And they are contemplating invalidating the passports of those who don't pay taxes abroad, even if they are paying taxes to other countries.
This cannot end well because as the enforcement efforts increase, the process gradually drifts from civil to criminal encumbrances. When too many resources are being oriented toward these issues, the massive criminal justice system will begin to demand its "pound of flesh."
Once the US gets into the business of prosecuting civil – monetary – issues criminally, the game is up. Darkness shall certainly have descended.
This is how even empires die. Once the confiscation of revenue becomes criminal than all sorts of legalized theft becomes practical. One pays for lack of foresight or judgment or simple ignorance with years of one's life.
Criminalize civil, monetary offenses and even Leviathan becomes intolerable. In Rome, "citizens" finally decided not to fight for their criminal state. The same will doubtless happen to the US.
The cadre of elites that seek world government doubtless scoff at this prospect. But the Internet Reformation is a process not an episode.
The more and more outrageous the US's demands become, the more people will turn to Internet information to check – and validate – their assumptions.
They will begin to believe that "something is wrong." And they will be right.