Richard Fernandez at Belmont Club noted a proposal impacting U.S. passport issuance.
Money quote(s):
"The problem with becoming a taxpayer is that it puts you in the system. You become a database record, and there’s no end to the uses that government can put that too. A proposed bill would allow the State Department to “deny, revoke or limit a passport for any individual whom the Internal Revenue Service has certified as having a ‘seriously delinquent tax debt’ in excess of $50,000. The amount would be adjusted for inflation in future years.” The provision was part of a larger amendment by Senate Majority Leader Harry Reid, D-Nev. to fund a highway bill."
There are a couple of ways that a U.S. citizen can find issuance of a U.S. passport to be delayed or denied. One is to be sufficiently behind on ones child support payments that the state in which they are paid reports that fact to the Department of Health and Human Services. They, in turn, relay that information to the State Department's Bureau of Consular Affairs and in very short order that information is available to U.S. consular and passport officials across the country and around the world.
Presumably this restriction would work in a similar fashion.
(Just to be clear, it's possible for a U.S. citizen abroad to get a limited validity passport that'll allow them to travel home to the U.S., just to keep them from being stranded.)
"One way to escape this hassle is not to join the system at all. Many Americans will never have to worry about getting their passport canceled for tax reasons because they don’t pay any. The Daily Mail reports: “Only half of U.S. citizens pay federal income tax, according to the latest available figures. In 2009, just 50.5 per cent of Americans paid any income tax to the federal government – the lowest proportion in at least half a century.”"
CAA has a problem with this.
It's not that many American aren't paying taxes at all, but their deductions and tax liability exceeds the amount of income withholding tax so they get a refund at the end of the year. In some cases, it's the entirety of the taxes they paid. Which withholding tax the federal government has the use of, interest-free, for as long as it takes the individual taxpayer to file their return.