There are some folks who indulge in “Serial Idiocy”. Little Chucky Shumer is one of those. Whatever district he represents must be full of incredible average idiocy, as they keep electing him.
He is a rabid Camera Hound and never fails to find some kind of Incredible Stupidity to use as a lever to get in front of the camera and rant. So far every rant of his which I have seen has been both daft and “exactly wrong”.
One of the Facebook Founders stands to make a bundle on the IPO tomorrow. Eduardo Saverin. He has been living in Singapore since 2009. He was born in Brazil. He has just renounced his US Citizenship (who really needs three citizenships?). This will save him about $67 Million to $100 Million in capital gains taxes as Singapore has no capital gains taxes.
Now, rather than realize that capital is flooding into Singapore and that Singapore is thriving and that maybe, just maybe, punishing capital and success drives it to places that appreciate it; Little Chucky Shumer is in thrall of his sense of greed, envy, and spite. Hardly virtues, some of those are classical sins.
His solution? No, no attempt to lower capital gains taxes to attract capital to this country. No, no attempt to make US Citizenship attractive to attract the best talent to this country. None of that. He want’s his pound of flesh.
Their so-called “Ex-PATRIOT Act” would impose a mandatory 30 percent tax on American investments for those who renounce their citizenship and would also prohibit individuals like Saverin from re-entering the country.
The law — which only applies to individuals with a net worth of over $2 million or an average income tax liability of at least $148,000 — would not apply to non-American investments by former citizens.
Gee, $2 Million is BIG, must not apply to the 99%…. Except that in places like California a relatively modest home can run $1 Million. Even an ordinary 1960 era 1000 sq.ft. tract home in poor repair in a nondescript part of San Jose runs about 2/3 of a million. And after a bit of inflation in the coming decade? That $2m will be a condo in Florida…
Or, say, one is a farmer with an inherited family farm. 200 acres at $10,000 per acre puts you in that class. Long time farmers will realize that 200 acres is very small in some parts of the market. Wheat, for example, or corn.
Tear Down This Wall!
Now what kind of country puts up walls to keep people in? What kind of country forbids them to take their goods with them if they do manage to escape over the wall? What kind of country puts up a wall and says “Dissidents may not visit!”.
Do we believe in freedom? Freedom of association? Freedom of travel?
Do we believe in the Rule Of Law and Equality before the law?
What kind of society makes laws to punish individuals or classes of individual and reward others? What kind of society has two sets of rules, depending on your class?
We are already one of the few countries in the world that taxes citizens even if they have left the country. (IIRC you get a tax bill for 10 years or so, regardless). Now we’re going to punish non-citizens for having chosen to abandon the country for good?
Frankly, that kind of country has no worries about lost taxes from folks investing into it.
I would not choose to make an investment in such a country as an outside party. The amount of ‘external investment’ will drop by far more than the revenue they expect to gain.
Furthermore, folks who are just thinking about coming to America to follow their dream and invent the future are hearing loud and clear “Go East Young Man, Go EAST!”. We’ve already lost massive amounts of capital and startup business to China. I know. I’ve worked as the I.T. Department guy in several startups in The Valley. About a decade ago the “talks” with the Venture Capitalists shifted. They had been about “What is your monitization strategy?” and then the question started showing up “What is your China strategy?”. At one startup, there was an executive huddle as they figured out how to leverage their way via China to go make “round two” pitches after “The China Question” came up in round 1 and they were unprepared. Now, the main area where startups used to grow like weeds in spring, is now a long row of mostly empty buildings. So now we’re going to tell them “Don’t even put your headquarters and design shops here”.
If I’m a guy with a bright idea and I’m looking to exploit it, am I going to set up shop in Silicon Valley or anywhere in the USA, knowing that laws will be custom made post-facto to penalize you if you succeed? Will some guy from India, China, Japan, heck even Spain or Germany; set up a company HERE and try to get US Citizenship so he can be assured of staying here for the several years needed to get a startup off the ground and thriving; knowing that by doing so he is entering a financial prison with a large “No Exit” sign on the door?
No, folks will be “staying away in droves”.
My advice? If you have anywhere near $2 Million of wealth, get a second citizenship outside the USA and dump the USA citizenship NOW. It’s a “one way gate” if you cross $2 Million, so take that ramp with the “Last Exit before Bridge to Financial Prison” sign…
Avoid “The Shumer Hotel” where “Capital checks in, but it never checks out…”
If you have a significant personal wealth, have your children get citizenship elsewhere. Transfer wealth to them prior to their reaching that $2 Million line. Even if YOU can’t escape the Tax Prison, they can.
Let the capital flight begin.
There seems to be some kind of brain defect on the part of the most rabid and most dim of the Dimocrats. It does not infect folks like my Democratic Texas Uncle (who rants about the Dim part of the Democratic party more than I do). It does not infect folks like my Florida Friend Democrat ( a Military Brat and social liberal; but who understands business and money.) Yet in the higher ranks of the Democrats, there are a bunch of the Most Dim who regularly come up with nutty schemes that are exactly wrong; largely based on what looks like some sense of retribution.
As near as I can tell, these folks largely violate most of the “7 Deadly Sins” and have antithetical beliefs from the beliefs that class those things as sin. They are, near as I can tell, driven to strongly emotional behaviours directly from the need to satisfy then feelings of greed, spite, avarice, etc.
They also seem to have minimal ability to understand cause and effect, and to see more than one step down a causality chain.
It is these folks who have brought us ever more dependency in the population, ever more welfare state, ever more “stimulus” that is more like “graft for friends”, and ever more politically directed funding of “research for an agenda”. Ever more “class warfare” and ever more chaos. (Such as the “occupy” movement).
You would think they might notice that Hong Kong and Singapore have some of the strongest growth and highest rates of wealth creation on the planet, the best standards of living and increases in standards of living for their citizens. But no. They are hell bent on taking us to the kind of world, and with the kind of “success”, that gave us East Germany and the USSR. Places with walls to keep folks in. Places that punish people for wanting to “pack up their shit” and leave. Places that punish success and drive out the successful.
So what kind of country has the government buying “stakes” in banks? What kind of country and economy do you get when you have a “Green Power Agenda”? What kind of country are we headed toward?
Sinikka Tarvainen dpa
May 10, 2012
Spain will nationalize Bankia, the bank the most exposed to the collapse of the country’s decade-long property boom, the government said late Wednesday.
The state will convert into shares 4.6 billion euros (5.9 billion dollars) which it had injected into Bankia through the bank restructuring fund FROB. That will make the state the biggest shareholder in Bankia, Spain’s fourth-largest bank, with a 45 per cent ownership stake.
Reports had earlier said the government would later inject up to 10 billion euros into Bankia, a group of seven savings banks whose chairman Rodrigo Rato announced his resignation on Monday. Rato was succeeded by former BBVA bank chief executive Jose Ignacio Goirigolzarri.
Spain. 20% nominal unemployment. Actual unemployment, and especially among the young, much much higher.
That is where class warfare ends up.
That is where punitive law ends up.
That is where the USA will end up.
That’s what Shumer wants.
Please, just don’t “go there”.