Twitter, Facebook, and the usual lefty blogs are doing a great deal of hand-wringing over the story that Facebook co-founder Eduardo Saverin is planning to renounce his U.S. citizenship, apparently to avoid onerous U.S. taxes.
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Here’s the coherent way to look at it.
Renouncing citizenship: Did Eduardo Saverin do anything wrong? – The Economist: Wait a second! Did Eduardo Saverin plunder us? Are we now a desolate husk of a country, sucked dry by Eduardo Saverin’s rapine? Well, no. Facebook created wealth. Mr Saverin is leaving having deployed his capital in a manner that made America better off than it was when he arrived. But will he escape without rendering unto Caesar what is Caesar’s? Well, no. Both Mr Manjoo and Ms Hogue mumble in passing under their breath while coughing that Mr Saverin will have to pony up an “exit tax”.
Uh-huh. And …
What America Owes Eduardo Saverin – Aaron Ross Powell – Libertarianism.org: Because it’s not like Saverin did nothing to earn his billions. They didn’t fall out of the sky onto his head, at which point he gathered them up, stuffed them in his pockets, and said, “Screw all of you.” No, Saverin got rich by creating immeasurable value for Americans (and billions others around the globe). He co-founded an enormously successful company, one that in turn lead to the creation of many other enormously successful companies. All of those business employ thousands of Americans, who not only are more prosperous than they probably would’ve been without Facebook, but also pay taxes on all their earnings. So even without its cut of Saverin’s IPO windfall, Uncle Sam comes out ahead, as do all those American workers.