I&#x27;m also an American expat (Iceland), and for a lot of people, there will be no difference except for inconvenience. If you make less than about $100,000 per year, you exclude that income from US taxes completely. You still have to file a 1040, but you just declare the income on one line and negate it five lines later. You send the IRS the completed form showing you owe $0 and you&#x27;re done.<p>And if you make more than $100,000 but live in a country that isn&#x27;t a tax-haven, you exclude that income too because you&#x27;re only taxed on the difference between the taxes you would owe the US government and the taxes you paid in your home country. In Europe at least, you&#x27;re almost always taxed at a higher rate than the US would have taxed you, so again, you don&#x27;t owe anything. You&#x27;re only looking at that 30% burden if you live in a country with no taxes and you make millions of dollars (because again, the first $100k is excluded).<p>I agree it&#x27;s a bit crazy that the US taxes worldwide income, but the practical consequences seem pretty minimal. My bank has no problem with me as a customer, or at least if they do, they haven&#x27;t said anything to me about it.