A couple of initial completely unscientific nuggets of information I found on this subject.
1. There are a lot of US Citizens living is Israel some of which arrived many years ago and in other cases arrived as recently as a year or two ago. On a per capita basis numbers as high or higher than Canada
2. There is definitely real unhappiness around US citizenship tax policies in Israel. A lot of people don’t want to talk about it for fear of upsetting the apple cart of US Israel relations, US relatives etc. From what I found there was a lot of concern during the time when Obamacare was being passed that some type of levy would have been imposed on US citizens worldwide.
3. Some people I found though definitely are starting to talk more about it with all the news about FBAR and FATCA.
4. There are probably more US tax lawyers and preparers in Israel than in Canada including some who deal with expatriation/renounciation issues similar to what Phil Hodgen does. I don’t know of anyone located in Canada who does the same.
5. Very minimal past FBAR compliance more compliance in terms of filing returns.
6. Lots of what in my opinion sounds like very bad information was floating around in the past. Like telling US citizens in Israel to file a 1040 but not report any Israeli source income(To me: Sounds very very bad).
7. The Jerusalem Post just a few weeks ago published in an interview with a US tax lawyer telling ANY US Israeli dual citizen behind in filing to enter OVDI 2012. Again we have discussed this a lot.
8. Several US citizens bloggers I found in Israel indicated that the FEIE is a big issue to them and people they know. They seemed to indicate if the FEIE is eliminated they will renounce.
9. Unlike Canada there has been some past history of “whales” renouncing to become Israeli. One example I found was Ted Arison whose family owns Carnival Cruise Lines and the Miami Heat basketball team.
10. To those of you politically inclined Obama does not appear to be popular among more right leaning Likud party supporters in Israel on both foreign policy and economic policy issues. This could be factoring into some dislike among US Israel duals who support Likud.
11. Canada and Stephen Harper are becoming very popular in Israel especially among the right/Likud far more than many Canadians or Americans realize.
12. A lot of US Israeli duals vote absentee in the US and their vote tends to be concentrated in certain congressional districts in New York, Florida, California much more than with Canada. On otherhand I don’t get the feeling overseas voters in Israel are really listened to anymore than anywhere else. There could be some very close races though in some of these districts in the fall.
Again these are just my initial impression on the issue. Post is subject to change without notice. Hoping for comments from anyone effected in Israel.