Originally Posted by whalesurfer

You're absolutely correct. ..and that's exactly why this flight attendant was trying to challenge the IRS. She was NOT trying to argue if this or that should qualifies as overseas income. She was arguing that income taxes should be assessed based on ones residency and not ones passport. That's how the entire world, except the US and Eritrea, does it.

Here's an excellent article which explains the differences between the US and the rest of the world when it comes to taxation..

"...The U.S. is the only country that taxes its citizens on their world-wide income, no matter where they live.
OK, there’s also Eritrea. It imposes what is derisively termed a “diaspora tax” on its citizens.
Otherwise, though, the basic rule is that countries impose their taxes on individuals based on their residency, not their citizenship..."

Tax History: Why U.S. Pursues Citizens Overseas - Washington Wire - WSJ