Facebook, now Meta Platforms Inc. IPO in 2012 created a few billionaires and several millionaires. The social network's co-founders were among the youngest billionaires at the time, and the returns on their original investments were extremely profitable.
So much so that Eduardo Saverin, who was a 21-year-old college student when he made his first seed investment into Facebook, renounced his U.S. citizenship just in time to save on taxes. Saverin said he is moving to Singapore "indefinitely" but retained his Brazilian citizenship.
Enter Chuck Schumer
U.S. politicians and the Internal Revenue Service (IRS) were not big fans of Saverin's move, though. His decision was controversial enough that it led to Chuck Schumer (D-N.Y.) proposing a new legislation called the ex-PATRIOT Act.
The proposed rule targeted individuals who renounce their U.S. citizenship or terminate their long-term U.S. residency for tax purposes.