We tend to think only wealthy citizens wishing to avoid taxes renounce US citizenship. In reality many ordinary Americans abroad are forced to renounce their citizenship as it has become extremely difficult to live as an expat with the pressure of filing taxes and the unwillingness of banks abroad to serve American clients due to the difficulty this comes with. This pressure from the IRS is useless as 82% of Americans abroad end up owing nothing in taxes to the US.
If we adopt residence-based taxation citizens and permanent residents would only pay taxes for US income and holdings making things fairer.
Adopting this policy would earn the Gov. $20-$30 billion dollars in 10 years according a paper by American Citizens Abroad (link to website below).
http://americansabroad.org/



