The National  Memo Logo

Smart. Sharp. Funny. Fearless.

Monday, December 09, 2019 {{ new Date().getDay() }}

Eduardo Saverin, one of the co-founders of Facebook, has renounced his U.S. citizenship in an effort to lessen his tax load after the social network’s massive initial public offering.

Saverin — who was memorably portrayed as a well-meaning business neophyte in the 2010 film The Social Network — was born in Brazil and is currently a resident of Singapore. Saverin became a U.S. citizen in 1998, but his spokesman told Bloomberg News that he decided to renounce his citizenship “around September” of last year.

The decision will save Saverin a fortune. He holds a roughly 4 percent stake in Facebook,  which Bloomberg estimates could be worth as much as $3.84 billion after Facebook’s massive IPO. That money would be subject to taxes in the United States, but Singapore does not have a capital gains tax.

Reuven S. Avi-Yonah, director of the international tax program at the University of Michigan’s law school, told Bloomberg that Saverin’s decision was “a very smart idea,” from a tax standpoint. “Once it’s public you can’t fool around with the value.”

So instead of paying his fair share to the country that helped him make billions, Saverin will spend his cash “lounging with models and wealthy friends at local night clubs,” and “racking up tens of thousands of dollars in bar tabs by ordering bottles of Cristal Champagne and Belvedere vodka.”

Saverin won’t completely escape the IRS; Americans who renounce their citizenship still must pay an exit tax on the capital gains from their stock holdings, even if they don’t sell their shares.


Start your day with National Memo Newsletter

Know first.

The opinions that matter. Delivered to your inbox every morning

Herschel Walker

Former football star Herschel Walker has attracted a large following as a commentator over the last decade, carefully crafting an image as an upstanding Black American with a focus on conservative “family values.” So when news broke last week of Walker having a 10-year-old child whom he did not raise, the Georgia Republican Senate candidate's detractors began hammering on the contradictions between his moralizing speeches and his own life.

Walker has made his stance against fatherless households a key component of his personal political brand. In a 2020 interview, he said the Black community has a “major, major problem” with fatherless homes.

Keep reading... Show less

Rep. Lauren Boebert

YouTube Screenshot

For far-right Rep. Lauren Boebert of Colorado, owning a gun-themed restaurant called Shooters Grill has been a major promotional tool among fellow MAGA Republicans and members of the National Rifle Association (NRA). But according to Daily Beast reporter Roger Sollenberger, Boebert’s promotional tool may be in trouble: Sollenberger reports that Boebert’s restaurant is “facing an uncertain” future now that the new landlord of the property she has been renting has announced that he won’t be renewing her lease.

In an article published by the Beast on June 23, Sollenberger describes the property’s new landlord as a “marijuana retailer.”

Keep reading... Show less
{{ }}