This question is about personal finance as this directly applies to my situation as a US citizen, which I intend to keep for work purposes, and as a citizen of another country, which I am willing to switch if it is tax advantageous. See Why was this question put on hold as off-topic?.
Assume that Bob is a citizen of the US and a citizen of country X. Bob lives in country X. Since the US uses citizenship-based taxation, Bob is subject to taxes in both the US and country X. Is there any country X that fully exempts their citizens/residents from the US citizenship-based taxation?
I read on 20minutes.fr (mirror) that some French politicians are trying to pass a law exempting dual US+French citizens living in France from US taxes:
« Le problème principal, c’est que la fiscalité américaine est basée sur la nationalité, en contradiction avec les règles de l’OCDE, estime l’eurodéputée française Virginie Rozière. L’Erythrée a voulu faire pareil et a été sanctionnée. Il n’y a pas de raisons de traiter les États-Unis différemment. Ils ne se comportent plus comme un grand frère bienveillant mais comme un acteur sans foi ni loi qui cherche le rapport de force. Si on n’est pas capable de répondre, on se fera écraser ».
Translation (based on Google Translate):
"The main problem is that the US tax is based on nationality, in contradiction with OECD rules," said French MEP Virginie Rozière. "Eritrea wanted to do the same and was sanctioned. There is no reason to treat the United States differently. They no longer behave like a benevolent big brother, but as a faithless, lawless actor who pursues relations based on force. If we cannot respond, we will be crushed."
so I wonder if any precedent exists.