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U.S. citizens don't necessarily have to pay U.S. income taxes on income they earn abroad, depending on length of residency abroad and level/type of income:

http://www.irs.gov/taxtopics/tc853.html

Much clearer information at About.com:

http://taxes.about.com/od/taxhelp/a/ForeignIncome.htm

Short version: if you move abroad, you pay taxes only on income over $87,600, at least for 2008.

You can also exclude some housing allowance, but the amount is not as standard or clear (see About.com).

BTW - I'm an American living abroad; I agree that you should seek to solve the problems you have / perceive, and not expect anything close to perfect anywhere. I miss a good number of things about the U.S., and many things... not so much. YMMV...



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