Days after President Trump announced a $5 million “gold card” visa scheme to attract wealthy individuals for permanent residency in the US, many billionaires criticized the initiative. Trump claimed it would help reduce the federal deficit, but a Forbes poll revealed that nearly 75% of billionaires showed little interest. Critics highlighted the costly nature of the scheme and the US’s tax implications as deterrents. Notably, the gold card aims to replace the EB-5 immigrant investor visa program, offering similar residency benefits for a direct purchase. Further details about the program are expected soon.
Shortly after US President Donald Trump revealed his ambitious $5 million “gold card” visa initiative that promises permanent residency and work authorization in the US, a number of billionaires have criticized the proposal. During the announcement, President Trump claimed it would attract affluent individuals to the US and ultimately reduce the federal deficit.
However, a recent Forbes poll involving more than fifteen billionaires found that nearly three-quarters are not inclined to take part in the program.
“In my view, there is no reason for wealthy people to join this program,” remarked a Russian billionaire, while another from Russia stated, “Anyone with a solid business idea can execute it now for a fraction of that cost, so why spend $5 million? I don’t see who would pay that amount.”
“I wouldn’t choose to be a citizen of any country besides India at any point—especially now,” said Abhay Soi, head of India’s second-largest publicly traded hospital chain by revenue.
The ultra-wealthy highlighted tax implications related to the US as a significant obstacle to participating in the program. The US is among the few countries that levy taxes on their citizens’ income regardless of their residency status.
While Mr. Trump mentioned that gold card holders “won’t have to pay any tax on income outside of the United States,” the billionaires are doubtful that Congress will endorse this decision.
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What is the gold card visa?
The new “gold card” residency permit, priced at $5 million, has been promoted as a substitute for the existing green card system. The initiative, slated to launch in two weeks, is expected to supersede the current EB-5 immigrant investor visa program.
“We are going to be introducing a Gold Card. We are going to assign a price of about $5 million to that card. It will confer Green Card privileges, plus it will serve as a pathway to (American) citizenship, inviting wealthy individuals to enter our country by purchasing this card,” Mr. Trump stated at the time.
At present, the EB-5 Immigrant Investor Programme offers green cards to foreigners who invest in US businesses and create or sustain jobs. The US president aims to replace this program with the new “gold card” initiative, which will provide similar residency rights but with a direct purchase option for affluent individuals.
Further information about the gold card program is anticipated to be released in the upcoming weeks.