As deficit spending continues, with a Congress out of options and no leadership or discipline, the election of 2012 contains the call for "shared sacrifice" with the answer of proposed higher taxes by President Barack Obama and his fellow Democrats under the populist idea: Tax the rich.
This week, Facebook plans to offer 421.2 million shares of stock in an initial public offering at an estimated cost of $34-38 per share. That would raise almost $16 billion for the social media company.
As of April 30, one of the co-founders of Facebook officially renounced his U.S. citizenship. Eduardo Saverin, the first investor who provided early financing, was a Harvard classmate of Mark Zuckerberg. His share of the $96 billion company is four percent, which is projected to be worth up to $3.84 billion after the stock offering.
A spokesman for billionaire Saverin said, "Eduardo recently found it more practical to become a resident of Singapore ..." Singapore, by the way, has no capital gains tax, which would take 15 percent of Saverin's billion-dollar return.
You see, the Brazilian-born investor is among an ever-growing number of people who give up their citizenship to reduce their tax liabilities.
While America offers an environment rich in opportunity and the world's largest retail economy, the bloated government with no discipline to reduce our debt, restrain regulation and reform our tax policy is responsible for driving away wealthy citizens.
Without successful businessmen and women, along with their wealth, the American dream is destroyed. The current enemy of free markets and the opportunity to pursue prosperity is the federal government.