No doubt Facebook has changed lives—more than 900 million, in fact. But with its initial public offering of stock on Friday, the social network founded by Mark Zuckerberg in his Harvard dorm room has raised stratospheric expectations. The 8-year-old company’s valuation would top $100 billion, according to Wall Street. Is this an omen of wild profits to come or the latest Sign of the Apocalypse? Remember the dot-com bust?
Saverin, 30, a Brazil-born resident of Singapore who helped launch Facebook with his Harvard schoolmate Mark Zuckerberg, reportedly renounced his U.S. citizenship in September before the company announced its planned initial public offering of stock. Owning an estimated 4 percent of Facebook, he stands to make $4 billion when it goes public.... Those in the expatriate community said that although Saverin’s move was likely a financial one — he paid an exit tax on the capital gains from his Facebook stock but the stock is now tax-free — they said expatriates who gave up their citizenship were driven by other factors. Phil Hodgen, an international tax lawyer in Pasadena, Calif., said that since 2009, when more than 150 U.S. customers of Swiss banking giant UBS were investigated for alleged tax evasion, the IRS had been going after Americans abroad with foreign bank accounts with a vengeance. He said that in the last three years, new and old rules had created an enormous amount of resentment — and paperwork expenses — for expatriates. “It just ended up wreaking unfairness and grief on ordinary people,” Hodgen said. http://abcnews.go.com/blogs/business/2012/05/facebooks-eduardo-saverin-joins-americans-renouncing-citizenship/