Senators propose "Ex-PATRIOT" act to tax former US citizens who renounce US citizenship to avoid paying taxes
But Saverin renounced that citizenship last year, before the company he helped found announced its intentions to go public. He has lived in Singapore since 2010, according to reports.
While Saverin's spokesman has maintained that he changed his status in part because he plans to remain in Singapore, it's widely believed that he also wants to take advantage of local laws that specify a personal income tax rate of 20 percent and no capital gains tax.
The two Democrats unveiled a bill called the Ex-PATRIOT Act, or the "Expatriation Prevention by Abolishing Tax-Related Incentives for Offshore Tenancy" Act. It may never even rise to the level of committee consideration, but if it does pass, it would require Saverin and others who renounce citizenship to pay taxes at a 30 percent rate on any U.S. investment.
Read more: 'Ex-PATRIOT Act' would tax Facebook's Eduardo Saverin - POLITICO.com