IIRC my reading of stories of US citizens working in other countries and paying taxes in those countries can deduct the money they have paid on the American taxes from the money they have to pay to the local taxes. Which makes sense otherwise nobody would want to leave the US to work in another country, given that other countries often have much higher taxes.

At any rate I would definitely be deducting the American taxes, if I was hit with a situation like this.

I guess though with Google doing it there are all sorts of things that won't be too the creator's benefit - for example if I got 10000 before and spent 2000 on things I could deduct in my home country and now I get 8000 because America takes 2000 I might not take that 2000 deduction in my home country because I need the money for other non-deductable things, whereas taking a deduction on American taxes will probably be more difficult for me than it is for deducting things locally - ugh, I can see how it would make you pissed off.

Glad I don't deal with Google.