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No, that's incorrect. Yes, the US is one of the few governments that will tax you for income earned outside of the united states or while living aboard as a US citizen, but if you renounce your citizenship, you're off the hook for taxes. You need to file a tax return and declare income, but you don't pay taxes.

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P.L. 104-191 contains changes in the taxation of U.S. citizens who renounce or otherwise lose U.S. citizenship. In general, any person who lost U.S. citizenship within 10 years immediately preceding the close of the taxable year, whose principle purpose in losing citizenship was to avoid taxation, will be subject to continued taxation.

http://travel.state.gov/law/citizenship/citizenship_778.html

As an American living abroad, I've come across this several times. But how on earth do they enforce this?

If you live in Europe, (presumably) have EU citizenship, and have renounced your US citizenship, what jurisdiction does the US have over you?

Renounce your citizenship for something other than to avoid taxation. Like, you're suddenly in love with socialized medicine. Or to "protest the war" or "America's imperialism". Just don't mention taxes in your "exit interview" and there you go.

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