While All other nationalities: Canadians, British, Dutch, French can and do invest abroad in third world countries and don't get taxed for it (since its foreign income). Americans have to pay taxes on top of the risk they are taking. You know there is a risk to investing in other countries especially if they are developing countries. Foreign taxation discourages Americans from taking foreign risk, and the result: Other countries have a long term advantage, because guess what in the long term, The British, Canadians and French will be more diversified and have more businesses in foreign nations. foreign taxation makes America like a communist country because it discourages Americans from leaving the country and working or investing in foreign nations, so Americans become unaware of what's going on in other countries, Americans also lose their market share in developing nations.
Law expanding definition of terrorist activity passes first Knesset reading (Haaretz)
from the article: Israeli banks urge America clients to close Israeli accounts