The goal was ALWAYS to require reporting on accounts with $10,000 or more (I'll explain why later)
They knew that this would be totally unacceptable and an outrage if they proposed that outright so they proposed something even MORE outrageous so they could appear to compromise.
A very common bargaining tactic that has been mastered by the Demonrats. And one that the GOP consistently gets themselves trapped with.
Why $10,000?
Most of you in America may not know this but American citizens residing abroad still have to file tax returns and pay taxes if they live abroad, even if ZERO of their income is from a US source (for now, at least, they do get a tax credit for foreign income taxes and they can exclude a part of their EARNED (i.e., wages) income...but not UNEARNED (e.g., investment) income). The US is literally the only country in the world (with the exception of Eritrea in the Horn of Africa) that does this.
AND...starting in 2003 as part of the Patriot Act (may you rot in _______ George W Bush)...banks AROUND THE WORLD are required to report on balances of accounts over $10,000 held by US citizens. And US citizens are required to self-report the same info well, because, they can't trust those dirty foreign banks. It's called the FBAR (Report of Foreign Bank and Financial Accounts).
The thought is that all of us traitorous expats are going to hide our massive funds that we have earned from smuggling, terrorism, or other nefarious means in a bank account in our own names. Please, somebody, give me a break.
The first practical result is that there are a lot of banks in other countries that won't even talk to Americans, even though they're happy to open accounts for Brits, Canadians, Germans, Aussies, Kenyans, Mexicans, or any other nationality.
The second practical result is that there are an increasing number of well-to-do people (people with actual wealth, unlike retirees such as myself who decide to become beach bums in their old age) who renounce their citizenship because they are sick of being despised for their success and having their money stolen by their government.
The original goal was $10,000 so that they could fully monitor domestic accounts in the same way that they monitor foreign accounts held by Americans. And Republicans will be stupid enough to step right in the trap, thinking they actually got a W.
If the Republicans really wanted to fight this, they'd say "get rid of FBAR reporting." But they won't. Because they are either too stupid to realize how they're being played or they are in on it. You choose.
I saw it.......................