Is The Eduardo Saverin Ex-PATRIOT Act Tax Bill Constitutional?

Facebook co-founder Eduardo Saverin recently relinquished his U.S. citizenship just ahead of Facebook’s massive initial public offering. The move is expected to save Saverin anywhere from $67 million to $100 million in U.S. taxes on his Facebook stock grant valued at $3 billion.

Presuming that Saverin moved to avoid paying taxes, Democratic Senators Chuck Schumer and Bob Casey of Pennsylvania unveiled a legislation earlier this week to stop what they called a “despicable trend.”

They introduced the “EX-Patriot Act”. If signed into Law, then under their legislation, any American who renounces his or her citizenship for the purpose of avoiding taxes will be punished in two ways:
1) They will be barred from re-entering the U.S., and
2) Their future investments in the U.S. will be taxed at a 30 percent rate.

Is this even constitutional? If signed into Law, what are the implications of the “EX-Patriot Act” on other budding startup and tech entrepreneurs?

Antone Johnson, a WSJ guest columnist and startup lawyer based in San Francisco and Silicon Valley shares some of his thoughts on this matter in this video with oObly TV host Margaux

What Next?

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