The Taxman
 

I remember a year ago there was a story about Americans at CX and KA getting pay withheld for "US taxes." Did this ever actually happen?

I wouldn't doubt it.
The US is the only (that I know of) country that requires citizens to pay taxes in the US no matter where they live or earn their money.
And they have informed many banks and companies around the world that if they want to do business with the US government, then they will have to inform the US of any of their citizens money transactions.
Very few companies have said, we'd rather not do business with the US.
The US is not giving the companies a list of US citizens, rather they are having the companies/banks give the US government the list of people who are at their bank/company.

Yes....

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