(MintPress) – With the number of Americans renouncing their citizenship last year exceeding 1,700, two U.S. lawmakers are proposing legislation that bans expatriates from reentering the country in addition to being taxed when they leave.
The proposal, named the Ex-PATRIOT Act (Expatriation Prevention by Abolishing Tax-Related Incentives for Offshore Tenancy bill) is being backed by Sens Charles Schumer (D-NY) and Bob Casey (D-Pa.). In the proposition, it is suggested that there be a mandatory 30 percent tax on capital gains of any person renouncing their U.S. citizenship.
The legislation is in direct connection to Eduardo Saverin, co-founder of Facebook, who surrendered his U.S. citizenship before the company announced it would be going public. While Saverin has said it has nothing to do with taxes, many speculate that it does, especially considering he stood to make $4 billion when the company went public this week.
To that end, the Ex-Patriot Act would require him to pay $67 million in taxes.
«Senator Casey and I have a status update for him: pay your taxes, or don’t set foot in the United States ever again,» said Schumer.
It is reported that Severin currently has citizenship in Singapore and that he plans to live there indefinitely.