From ACA.CH website
Foreign Earned Income Exclusion Under Attack A bill (S. 3018), “The Bipartisan Tax Fairness and Simplification Act of 2010” introduced late-February 2010 by Senators Ron Wyden (D-OR) and Judd Gregg (R-NH), aims to make the Federal income tax system "simpler, fairer, and more fiscally responsible." Among other things, the bill would eliminate the foreign earned income exclusion, which concerns all US taxpayers living and working abroad.
The proposed legislation would also eliminate the Alternative Minimum Tax – which raises taxes for millions of middle-class Americans – and will reduce the number of individual tax brackets from the current six to three: 15 percent, 25 percent, and 35 percent. Additionally, it would streamline the tax code by eliminating a number of "specialized tax breaks" that favor one business sector or group of individuals over another. Among these “specialized tax breaks” is Section 911 of the Internal Revenue Code – the foreign earned income exclusion, which concerns all US taxpayers living and working abroad.
ACA is reviewing the text of the bill, which is currently referred to the Senate Committee on Finance and has no additional co-sponsors, to ascertain its potential impact on overseas Americans and its chances of passing.