Sam Pizzigati - No Country for Rich Men
May 15, 2012 Back in 1863, a short story took the American reading public by storm. Edward Everett Hale's The Man without a Country told the tale of a poor treasonous soul sentenced to spend the rest of his life endlessly sailing the world in perpetual exile, as a prisoner aboard Navy warships
Today's awesomely affluent are just as transient — by choice.
Take Facebook co-founder Eduardo Saverin. This billionaire renounced his U.S. citizenship in 2011, a move perfectly timed to potentially save him hundreds of millions in taxes when Facebook goes public.
Saverin has plenty of company. The number of Americans who formally renounced their U.S. citizenship soared to 1,780 last year from 235 in 2008.
The spark for this surge? U.S. tax officials ave been clamping down on overseas tax evasion. This bit of unpleasantness has some wealthy Americans, such as the Brazilian-born Saverin, cutting their ties to dear old Uncle Sam. They simply pay a $450 paperwork fee and an "exit tax" on unrealized capital gains, if they hold assets worth over $2 million or have paid over $151,000 to the IRS in any recent year.
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