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In the international section of its most recent annual report to Congress, the agency’s National Taxpayer Advocate notes that whether it’s Americans working abroad or foreigners residing here, “taxpayers who are trying their best to comply simply cannot.” The result is that some are “paying more tax than is legally required, while others may be subject to steep civil and criminal penalties.”

Here’s the real issue: When it comes to attracting highly successful people, America is just not as competitive as we like to think we are.

What we need is a complete rethink. That rethink begins with a hard look at what these 1,800 citizenship renunciations are telling us. True, 1,800 is a drop in the bucket compared with either the number of Americans working abroad or the number of foreigners who are seeking U.S. citizenship. Still, when it comes to the global inefficiencies of our tax code, these 1,800 ex-Americans are canaries in the coal mine.

Our tax code—and especially the onerous reporting requirements that come with it—is turning U.S. citizens into economic lepers. Many foreign banks refuse us as customers; some investment ventures no longer want us as partners; and some business opportunities that would have benefited Americans now benefit others.