The US already aggressively taxes its citizens living abroad, and merely renouncing your citizenship does not end it. Not immediately, at least. Saverin will continue to owe taxes to the US government the same as any other US citizen living abroad, for ten years after renouncing his citizenship. This generally amounts to paying the higher of the local tax or the US tax. That's how it works for income tax anyway - not sure about capital gains.
So while I'm not surprised to see Chuck Schumer behind this piece of shit bill being proposed, as a US citizen living outside the US: fuck. $148,000 liability over five years, or $2 million net worth and you are assumed to have renounced for tax-evasion purposes. Fuck that shit.
edit: All I've found is something that sounds a lot like the current bill, in fact. Are you saying that income tax is not taxed as though you are an American citizen for the ten years after you renounce your citizenship? I'd really like to confirm that.
"IRC 877A imposes a mark-to-market regime, which generally means that all property of a covered expatriate is deemed sold for its fair market value on the day before the expatriation date. IRC 887A further provides that any gain arising from the deemed sale is taken into account for the taxable year of the deemed sale notwithstanding any other provisions of the Code. Any loss from the deemed sale is taken into account for the taxable year of the deemed sale to the extent otherwise provided in the Code, except that the wash sale rules of IRC 1091 do not apply."
So while I'm not surprised to see Chuck Schumer behind this piece of shit bill being proposed, as a US citizen living outside the US: fuck. $148,000 liability over five years, or $2 million net worth and you are assumed to have renounced for tax-evasion purposes. Fuck that shit.