After watching the presidential debates I heard Obama call Mitt Romney out on the notion of these tax havens that people and corporations where using to reduce their taxes and while Mitt stood there dumb founded telling the American people "thats simply not true" I thought I would educate myself on this subject.  What I found to me was shocking..  I wont lie I almost wanted to take part in this if everyone else was, why should i be left out.

"U.S. taxpayers could organize and operate foreign corporations in tax havens to reduce their U.S. tax liabilities" President Obama.

For example, the ability of U.S. taxpayers to use a controlled foreign corporation (“CFC”) to effectively claim deductions that could not be claimed directly by relying on the “earnings and profits” limitation on inclusions of Subpart F income.

The ability of tax-exempt organizations to avoid “debt-financed income” by investing through a foreign tax haven “blocker” corporation that itself borrows, and the ability of U.S. taxpayers to avoid the corporate tax that applies to “taxable mortgage pools” (“TMPs”) by organizing their TMPs offshore.

Deferral: The Principal Tax Incentive to Operate Through a Foreign Corporation

Deferral Under Subpart F. For 10% United States shareholders in a CFC, the benefits of deferral are
maximized if non-Subpart F income can be shifted to a low-tax jurisdiction; this benefit can be
multiplied through tax-deductible leverage in the United States.

Weighted average for G-7 Countries 0.6%
Ireland 7.6%
Cyprus 9.8%
Barbados 13.2%
Luxembourg 18.2%
Island of Jersey 35.3%
Bahamas 43.3%
Marshall Islands 339.8%
British Virgin Islands 354.7%
Cayman Islands 546.7%
Bermuda 645.7%

This suggests that U.S. corporate profits are being disproportionately diverted to tax haven countries, as U.S. companies earn on average more than 1000% more profits in Bermuda.

Return on Assets (1998)12
Average for U.S. manufacturing subsidiaries 8.4%
Cayman Islands 16.67%
Switzerland 17.9%
Ireland 23.8%

Economists estimate that ending deferral would generate between $11 billion and $60 billion of revenue each year,15 which could be used to reduce the corporate tax rate by 1.5% (from 35% down to 33.5%).

Can you guess which industries the deferral is concentrated in?? The deferral is concentrated in the health care, information technology and energy
industries.

Are many of you aware that if you claim residency in another country as a subcontractor for instance, you cannot be taxed on the first $90,000 of your income?

One only has to ask themselves "Why is no one talking about this in public?"

Find out more for yourself:
http://www.law.nyu.edu/ecm_dlv2/groups/public/@nyu_law_website__academics__colloquia__tax_policy/documents/documents/ecm_pro_067812.pdf