Sorry but that's the most stupid law every. Why would you have to pay taxes if you're not even living in a country? I makes no sense. That's also the reason why some many people are giving up US citizenship now. However, I'm not American, so I don't care to be honest...
To me, it sounds like there's a philosophy that US citizenship is some sort of "awesome" privelage that needs a "toll" like such. Though the words and thoughts of some do not represent the government nor every person, I've dealt with some Americans that are completely integrated with a superiority complex in terms of the United States and other countries. After all, "who wouldn't want to pay for the awesomeness of US citizenship?"
Also, an income over 100k isn't that unusual in Switzerland. With a university degree and experience this is actually pretty normal.
Of course... I'm just making sure people get the right information. Taxing worldwide income is still a terrible idea, anyway. At least the effective tax is as bad as pure double taxation.
Income tax rates are often low in Switzerland and there's no capital gains tax.
I had no idea it had no capital gains tax. Interesting.
So banks constantly would have to worry about the income of their clients, whether they actually paid all their taxes, what they have to report to the US... It's a pain in the ass and if the bank makes a mistake then the get blackmailed into paying absurd fees and there's nothing they can do about it.
IIRC it's an extra 30% on any sort of transfer between Swiss (or any foreign) institution, if the institution has been caught not reporting the activity of US citizens (FBAR- and FATCA-related things), and a US institution.
Interestingly enough, an exit from institutional and governmental control is totally possible. If unstoppable and uncensorable currencies like Bitcoin become the norm, citizens (and even banks if they use Bitcoin for inter-bank settlement) could totally forget about the fee penalty if banks stop giving into the US' bullying.
Of course they stay way from US citizens...
So little people are affected by this, so nobody ends up caring. This is a classic problem of "it doesn't effect me", but as soon as it does, that person starts caring.