When People Can’t Afford to Stick Around

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Well, okay…so the Yahoo! guy ’embellished’ his resume a little. Big deal. Really, we’re surprised to see people make such a fuss about it. After all, who can honestly say they haven’t put a little positive spin on their own achievements. We have!

But let us rush to clean up our credentials before Dear Readers make a federal case of it.

Okay…on our age. It says we were born in 1959. Must be a typo. We were really born in 1953…okay…’48.

And, it says we attended Harvard University. Well, yes…we certainly did ‘attend’ Harvard… But through some bureaucratic mix-up our name was never on the official student list and our diploma must have gotten lost in the mail.

As for the Pulitzer Prize, we wouldn’t say that we were awarded the prize, not exactly. There again, it seems to be a case of a slight mis-wording. “Pulitzer Prize-winning” describes the quality of our work…as widely recognized, at least in the office here.

And we didn’t exactly invent the Post-It note. We just invented something like it, with scotch tape and a piece of paper. Same idea.

And, okay, did we really “win” the Nobel Prize in economics? We probably shouldn’t have used the word “win.” We were nominated…well, mom thought should have been nominated. She was putting us “in the running”…or something like that.

There, we hope that clears up any misunderstandings.

*** How do you like that? A guy comes from Brazil. He makes billions helping Zuckerberg launch Facebook. And then he leaves the country. You’d think he’d be more grateful. Or at least more sentimentally attached to the land that gave him so much loot.

But no. Edouardo Saverin is pulling out of the USA. Bloomberg reports:

Eduardo Saverin, the billionaire co-founder of Facebook Inc. (FB), renounced his US citizenship before an initial public offering that values the social network at as much as $96 billion, a move that may reduce his tax bill.

Facebook plans to raise as much as $11.8 billion through the IPO, the biggest in history for an Internet company. Saverin’s stake is about 4 percent, according to the website whoownsfacebook.com. At the high end of the proposed IPO market capitalization, that would be worth about $3.84 billion. His holdings aren’t listed in Facebook’s regulatory filings.

Saverin, 30, joins a growing number of people giving up US citizenship ahead of a possible increase in tax rates for top earners. The Brazilian-born resident of Singapore is one of several people who helped Mark Zuckerberg start Facebook in a Harvard University dormitory and stand to reap billions of dollars after the world’s largest social network holds its IPO.

But the rich are doing it all over the world.

A report from London tells us that the French are moving to town. France’s new president has pledged to raise income taxes on the rich to 75%…and to boost France’s wealth tax too. Wealthy French people are buying houses in South Kensington to escape.

As for the rich in Argentina, they’ve been making tracks for many years. As soon as they get some money they buy an apartment, in Miami!

Here in Baltimore, wealthy people have been getting out of town since the top in real estate in 1927.

And now, the rich are leaving Maryland too. Governor O’Malley says “wealthy people can afford to pay a little more in taxes…”

Well, yes, they can afford it. But that doesn’t mean they will like it.

“We’re moving to Florida,” says an old friend.

“Wait for me,” says your editor…

Meanwhile, the Irish and Spaniards are leaving their homelands too. Money is the reason. But smaller amounts of it. There are few jobs in Ireland or Spain, so they’re leaving to find work.

Even the Chinese are jumping ship. No kidding. Taxes are low in China.

Regards,

Bill Bonner
for The Daily Reckoning Australia

From the Archives…

Is the Australian Economy… Booming…or Busting?
2012-05-11 – Greg Canavan

The Art of Value Investing: How to Value a Business, Not a Stock
2012-05-10 – Greg Canavan

When Financial Markets Decouple From Reality
2012-05-09 – Dan Denning

Low Interest Rates Are A Dangerous Addiction!
2012-05-08 – Satyajit Das

The Bear Hunters and the Trigger Event for the Aussie Dollar
2012-05-07 – Dan Denning

Bill Bonner

Bill Bonner

Best-selling investment author Bill Bonner is the founder and president of Agora Publishing, one of the world's most successful consumer newsletter companies. Owner of both Fleet Street Publications and MoneyWeek magazine in the UK, he is also author of the free daily e-mail The Daily Reckoning.
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Jason
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Not just the rich leaving the US, recently a report from the US census department mentioned that ‘immigration has peaked’ and that increasing numbers of people are leaving the USA, even Hispanic immigration is in decline with more people leaving America in increasing numbers as time goes by. Probably becuase there really is no work in the US and the country is broke.

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