Days after US President Donald Trump announced his rather ambitious $5 million “gold card” visa scheme that offers permanent residency and work authorisation in the US, a slew of billionaires have slammed the move. While announcing the scheme, President Trump said it would encourage wealthy people to come to the US and eventually lead to a decrease in the federal deficit.
However, according to a recent Forbes poll involving over a dozen and a half billionaires, nearly three-quarters said they would not be interested in availing the scheme.
“In my opinion, there is no reason for rich people to go to this program,” said a Russian billionaire while a Russian added: “Whoever has a business idea can do it now for very cheap, so why spend $5 million? I do not understand who will pay $5 million.”
“I wouldn’t want to be a citizen of any country other than India anytime-particularly in this century,” said Abhay Soi, who chairs India’s second-largest listed hospital chain by revenue.
The ultra-rich cited tax implications involving the US as one of the biggest bottlenecks in availing the scheme. The US is one of the few nations that taxes its citizens on their income irrespective of where they reside.
While Mr Trump said gold card holders “won’t have to pay any tax on income outside of the United States”, the billionaires are sceptical that the decision would receive Congressional approval.
What is the gold card visa?
The new “gold card” residency permit, priced at $5 million, has been touted as an alternative to the existing green card system. The initiative, set to launch in two weeks, is expected to replace the existing EB-5 immigrant investor visa programme.
“We are going to be selling a Gold Card. We are going to be putting a price on that card of about $5 million. It’s going to give you Green Card privileges, plus it’s going to be a route to (American) citizenship, and wealthy people would be coming into our country by buying this card,” Mr Trump said at the time.
Currently, the EB-5 Immigrant Investor Programme grants green cards to foreigners who invest in US businesses and create or preserve jobs. The US president is aiming to replace this programme with the new “gold card” scheme, which will offer similar residency rights but with a direct purchase option for wealthy individuals.
More details about the gold card programme are expected to be released in the coming weeks.