I am willing to bet that ALL of these Citizen renuoncers are WEALTHY folks (AKA the 1% ).
The USA is one of only 2 countries I know ( the other one being a small African country I can’t remember ) that taxes you based on your citizenship REGARDLESS of where you earned your income.
Germans who work in America and make money here are NOT taxed in Germany for the money made here. But Americans who make money in Germany are taxed IN GERMANY *AND* America.
There was a time when an ex-pat could open a Swiss account and deposit their money there without having to inform the IRS. Not anymore. America bullied Switzerland to inform the IRS of ALL American bank accounts and the Swiss CAVED.
It's just never enough.
Other people have a right to an individuals labor and the US being a nation of rights and all....
Yes, I think you are correct with this assertion of the situation. American citizens are taxed by the USA, wherever in the world they live and earn their livelihood.
The AARO (Association of Americans residing overseas) has been criticizing this anomaly for quite some time now, if I remember correctly.
Unfortunately, I don’t know whether any bill has been introduced to Congress in order to rectify the situation for Americans living abroad. At least not yet...
Very few are are the very wealthy. With the US putting the heat on foreign banks to report Americans (even green card holders). There are a fair amount of ‘Americans’ who became citizens while living in the US but have since moved back to their country of origin and are now subject the reporting requirements but have little or no connection to the US.
The reporting requirements also include disclosing the accounts of a foreign spouse which many are loathe to do.