Little Chucky Shumer Latest Brain Fart

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”.

The latest?

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.

http://www.nypost.com/p/news/business/citizenship_facebook_propose_founder_tut8U8KI7m5rJ4BJRM1ziP?amp

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.

In Conclusion

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?

http://www.chicagotribune.com/business/sns-mct-lead-spain-to-nationalize-troubled-bank-bankia-20120510,0,3868553.story

Sinikka Tarvainen dpa

May 10, 2012
MADRID —

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”.

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About E.M.Smith

A technical managerial sort interested in things from Stonehenge to computer science. My present "hot buttons' are the mythology of Climate Change and ancient metrology; but things change...
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14 Responses to Little Chucky Shumer Latest Brain Fart

  1. TIM CLARK says:

    Could you explain in simple terms how you feel about this, I voted for him and you’re confusing me. /sarc.
    Better yet, on a scale of 1-10 rank this brain dead egotist against another of New York’s finest, Charlie “jail evader” Rangel.

  2. Pascvaks says:

    It’s the water! (SarcOff;-)

    We need a Special Tax Rate for Members of Congress and the Executive Branch (The White House Staff, Secretaries, Under Secretaries, Deputy Under Secretaries, etc. etc.) and, of course, Federal Judges who think the Constitution is just a piece of old paper.
    Do I hear 50%?
    I hear 50%
    Do I hear 60%?
    I hear 60%
    Do I hear 85%? 85%
    90%? I hear 90%
    95%? I hear 95%
    99%? I hear 99%
    Ladies and Gentlemen, we have 99%; are there any other proposals?

    199%
    500%
    10,000%
    1,000,000%
    Life without Parole!

  3. adolfogiurfa says:

    Big Kommizar says rich people are bad, silly people are good because they work for rich people and don´t know it, they think they work for poor people while receiving money from the rich. Well, there are two kind of rich people: We and they. We are the chosen ones from the beginning of time….well, we used to sell fabrics but now we sell well and beautifully printed paper, these are cheaper than fabric and can have ANY value we want. Clever politicians always work for us as we are always in need of other peoples´money, and that “Facebook” business seems a pretty good business to own it, so…this is only the beginning…

  4. E.M.Smith says:

    Oh Geezz…. Just found out (from the Biz show on CNBC) that we already HAVE an expatriate tax and that Eduardo already paid it on his exit. So this is just piling on more.

    https://en.wikipedia.org/wiki/Expatriation_Tax

    Unlike most countries, the United States taxes its citizens on worldwide income, whether or not they are resident in the United States. To deter tax avoidance by abandonment of citizenship, the United States imposes an Expatriation Tax on those who abandon U.S. citizenship. The tax also applies to green-card holders who abandon U.S. permanent residence, if they have been resident for 8 of the last 15 years, whether or not they are emigrating to avoid tax.

    The American Jobs Creation act of 2004 amended section 877 of the Internal Revenue Code of the USA.[1] Under the new law, any individual who has a net worth of $2 million or an average income tax liability of $139,000 for the five previous years[2] who renounces his or her citizenship and leaves the country is automatically assumed to have done so for tax avoidance reasons and is victim to severe tax laws. The HEART Act, passed on 17 June 2008, substantially modified provisions of the US expatriation tax. Under the new expatriation tax law, effective for calendar year 2009, covered expatriates, i.e. those who have a net worth of $2 million, or 5 year average income tax liability exceeding $139,000, are treated as if they had liquidated all of their assets on the date prior to their expatriation. Under this provision, the taxpayer’s net gain is computed as if he or she had actually liquidated their assets. Net gain is the difference between the fair market value (theoretical selling price) and the taxpayer’s cost basis (actual purchase price). Once net gain is calculated, any net gain greater than $600,000 will be taxed as income in that calendar year. The tax applies whether or not an actual sale is made by the taxpayer, and whether or not the notional gains arise on assets in the taxpayer’s home country acquired before immigration to the United States. It is irrelevant that the gains may have partly arisen before the taxpayer moved to the U.S.

    The new tax law also applies to deferred compensation ( 401(a), 403(b) plans, pension plans, stock options, etc.) of the expatriate. Traditional or regular IRAs are defined as specific tax deferred accounts rather than deferred compensation items. If the payer of the deferred compensation is a US citizen and the taxpayer expatriating has waived the right to a lower withholding rate[clarification needed], then the expatriate is charged a 30% withholding tax on their deferred compensation. If the expatriate does not meet the aforementioned criteria then the deferred compensation is taxed (as income) based on the present value of the deferred compensation.

    Furthermore, with certain exceptions expatriates who spend at least 31 days in the United States in any year during the 10-year period following expatriation are subject to US taxation as if they were U.S. citizens or resident aliens.[3]

    Welcome to the Prison Country…

  5. bahamamamma says:

    Let Chucky erect his version of the Berlin wall.

    He may find that our borders are just as porous when we try to stop capital leaving as they are when we try to prevent illegals from entering.

    I predict that no matter how hard Uncle Sam tries to enforce an exit tax, the rich emigrants will prove just as ingenious as the poor immigrants.

  6. sadbutmadlad says:

    Tim Worstall explains a bit more about Saverin’s situation at Forbes – http://www.forbes.com/sites/timworstall/2012/05/12/saverins-citizenship-renunciation-before-facebook-ipo-will-increase-not-reduce-his-tax-bill/

    The exit tax was introduced after Ken Dart of Dart Management who made a ton of money and then emigrated to Belize to avoid paying taxes.

    http://timworstall.com/2012/05/17/ken-dart-what-a-clever-man/#comments

  7. Pascvaks says:

    In Kalifornia there’s a popular saying these days, “GO EAST OLD MAN!”

  8. philjourdan says:

    I was going to point out that we did have an Expatriot tax, but you found that. He paid the tax based upon the valuation when he left, which is a ton less than what he would have paid today.

    And 2 things about Chucky.

    #1 – He is a senator, so he does not represent a district, rather a state – NY.
    #2 – He is a heart beat away from the Senate majority leader. Given who the current one is, that is not saying much, but apparently the idiocys does not end at the border of NY.

  9. adolfogiurfa says:

    As things go by…. immigration to the “first world” it is changing its first letter to “e”, and then it will change to RUN,RUN!

  10. jim2 says:

    Dumba$$es like Schumer are the people who got us up to 100% of our GDP in debt. They listen to other dumba$$es like Krugman. I don’t see how people can look at Europe and not “get it.” Dumba$$es.

  11. Pascvaks says:

    Narrow Minded, Short-Sighted, Lame-brained, Type-F Personalities, one day they will be aborted, or branded (or have their noses cut off;-) and prohibited from holding public office as United States Senators; unfortuantely for the rest of us, the Country probably won’t last and still be around on that great day in Medical Science. Short of a two term limit for Senators and Representatives, I don’t think this country is bright enough to solve the perennial problem of Congressional Incompetence. (It sure wouldn’t hurt to have two new political parties to replace the two we have now, anyone remember how to do that, it’s been a while hasn’t it?)

  12. Jeff Alberts says:

    The American Jobs Creation act of 2004 amended section 877 of the Internal Revenue Code of the USA.[1] Under the new law, any individual who has a net worth of $2 million or an average income tax liability of $139,000 for the five previous years[2] who renounces his or her citizenship and leaves the country is automatically assumed to have done so for tax avoidance reasons and is victim to severe tax laws.

    Hmm, under a Republican president.

  13. E.M.Smith says:

    @Jeff Alberts:

    The Repulicrims go along with the Dimocrats on the things they think do not impact their voters as a way of sucking up / curry favor. Part of why I don’t like either party all that much. No fundamental principle guiding either of them, near as I can tell.

  14. hillbilly33 says:

    Similar threats and hurdles to investment and innovation are being pursued in Australia where PM Julia Gillard and deputy-PM/Treasurer Wayne Swan have implemented another Mining Tax on top of their despised, useless and unwanted Carbon (dioxide) Tax. They, along with the Unions, are doing their best to resurrect the tired old class-warfare system of envy, spite and greed, a “them and us” attitude of battling “working families” versus “greedy rich mining magnates”! They forget that aside from the ordinary mum and dad shareholders, the futures of many ordinary people are bound up in superannuation fund investments in those very same miners. The tunnel-visioned Greens solution to all problems is more tax on everything possible! We are already seeing projects cancelled or postponed, firms closing here with consequent job losses and then transferring operations to Asia. That will accelerate when the Carbon dioxide Tax comes in on July 1st.
    Australia is getting more like California every day!

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