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Originally Posted by Eric5273
It's no "theory". It's how the Wal-Mart's of the world operate. There is a reason that almost all of the large importers have offices in the Kamen Islands or in Bermuda or other such places, and it is not for the nice weather.
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It's the Cayman Islands, not Kamen, as in Porsche Cayman.
Your example has nothing to do with outsourcing, but apparently it's your only go-to information in regards to outsourcing.
Tax havens have been around forever. If there are legal loopholes, both individuals and organizations will find them and they will use them without reservation. It is not only a U.S. only problem, it is an international issue, affecting all governments with a reliance on corporate taxation.
The existence of tax havens is not the deep dark secret that you make it out to be. The issue is that in order to bring about the reform, legislation, and cooperative culture, it requires foreign entities to be on the same page - to agree on how to bring this practice to a halt without bringing down financial markets and without causing organizations to fail. Therein lies the rub - agreement across borders.
Please stop posting your example under the description of outsourcing. Perhaps it's your tongue in cheek example of what you believe outsourcing to be. It's not outsourcing, and it's a broad brushed example of tax avoidance, albeit with a big sloppy paintbrush.