Look at it another way. When you bring the money back to the U.S. you get your original payment back (not in reality, but as a credit) and then pay just the U.S. tax. So you're not paying full-rate tax twice, which is most people understand by the term "double taxation". Note that this DOES occur in some situations but not in this one. Here you pay no more, but no less, than if the money had come directly.