You aren't paying more than if you live inside of the US. The foreign tax credit means you only pay the difference in income tax rates between the US and the foreign country. You don't pay everything you'd owe in the US (say 39% of your income), and then ALSO pay everything you'd owe in the foreign country (say 30% of your income, for a total in 69% of your income, THAT would be double-taxation).
Consider the case where you are earning enough money to be above the thresholds and in a country with higher income taxes than the US. The IRS will say that you owe X in income taxes, but will also give you a tax credit of X+Y based on the taxes you've already paid (assuming a tax treaty). As X+Y>X, you will not owe anything in the US.
Double taxation has a specific meaning and doesn't mean "paying more than one tax".
a) If I pay income tax and e.g. war tax, then this is two taxes. b) If I pay income tax and then earnings tax on top of that, then it is double taxing. c) If I pay income tax to country A, then same tax to country B, then it is double taxing.
We are talking about c).
Wikipedia:
Double taxation is the levying of tax by two or more jurisdictions on the same declared income (in the case of income taxes), asset (in the case of capital taxes), or financial transaction (in the case of sales taxes).
Consider the case where you are earning enough money to be above the thresholds and in a country with higher income taxes than the US. The IRS will say that you owe X in income taxes, but will also give you a tax credit of X+Y based on the taxes you've already paid (assuming a tax treaty). As X+Y>X, you will not owe anything in the US.
Double taxation has a specific meaning and doesn't mean "paying more than one tax".