Zahavasdad, even if you make income outside the US and live outside the US you must report (assuming that you make more than the minimum that requires reporting) although there is a very high deduction for earned income and tax treaties with some countries (Israel is one of them) provide for protection against double taxation. Whether or not you live in the US there are reporting requirements for financial accounts if the total in foreign accounts is at least $10K. The Republicans have called for repealing both. BTW, these requirements also apply to green card holders.
On the other hand, there are advantages to ex-pats who give their children US citizenship as child care aid and scholarships are available, sometimes even if they are studying abroad. In addition, if someone renounces his citizenship he will not be able to receive Social Security benefits while living abroad.
For practical advice ask your local tax consultant or accountant.