Facebook co-founder's decision to renounce U.S. citizenship outrages lawmakers

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exp point bob casey_00002001

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    Facebook co-founder inspires new tax act

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Facebook co-founder inspires new tax act 02:50

Facebook co-founder Eduardo Saverin caused controversy this week when he announced that he was renouncing his U.S. citizenship and moving to Singapore, a move that may allow him to reduce the taxes he pays on the social network's IPO launch by an estimated $67 million.

In defense of his actions, Saverin released a statement that reads: "I have paid and will continue to pay any taxes due on everything I earned while a U.S. citizen.  It is unfortunate that my personal choice has led to a public debate, based not on the facts, but entirely on speculation and misinformation."
Nonetheless, two senators on Capitol Hill are so outraged by Saverin's decision that they've introduced the "Ex-Patriot Act," legislation aimed at making people like Saverin pay.
The bill would would impose new penalties on those seeking to renounce their citizenship for tax purposes and bar them from re-entering the U.S. if the reason they renounce is to avoid taxes.
    On Starting Point this morning, Sen. Bob Casey, one of the senators who introduced the act, says that Saverin's case is one of the  "most egregious examples we know of" and stresses that people who try to evade paying taxes in this way "must be held accountable."