I think this really should be the moral behind this entire thread/incident.
However, I've done a fair bit of research behind renouncing your US citizenship (or not) and heading off into other countries.
To put my research in a nutshell, the US government pretty much owns you if you're born here and they will sink their claws in you as deep as possible if you try to leave.
Here's something I was reading just yesterday:
Google Answers: taxes are too high, time to change citizenship
which is why if you want to get sweet to avoid taxes you have to PLAY BY THE RULES.
YES- you cannot simply renounce citizenship any longer - this was mainly to combat the VERY RICH doing this and moving to BVI/Caymans/Panama/Such to save multi-millions.
However- as a US citizen you can most certainly have ownership interest in an offshore corporate entity or investment fund or tech private equity incubator. Many of the aforementioned countries welcome this with open arms and favorable tax climates.
You can of course, with LEGAL CREATIVITY depending on the country be a silent partner or in some cases off the books completely or a few layers down deep.
This company can employ you as a contractor, pay you a fair/comparable salary (say - $200k/year + bonus) which you'd be taxed on in the US, however the OFFSHORE COMPANY which you don't own but a fund you may own the controlling majority in owns might have made $50M and simply keep it offshore.
Of course the company as any entity can can purchase things and provide their employees/executives use of them. You know- Lamborghinis, Jets, etc.
However these aren't YOUR assets, your employer based in Panama owns them, pays appropriate taxes/registrations/etc, you just may be using them when on business for your employer in the US.
This is how those who actually make a lot of money and want to keep more of it play.
They don't insist on being an engineer for themselves, whine about low billables (BTW- if you're GOOD, at, well ANYTHING) "3 large corporations in Austin" cannot possibly drive down your hourly rates. Many web designers will build you some microsite for $200. You want one from me? It'll be $5,000+. Why? That's not what I do, and I'm very expensive.
This idiot just wasn't good and likely lived a life of mediocrity with visions of grandeur and blamed it all on laws that those who succeed beyond his wildest dreams play by, or as I outlined above legally and creatively bypass.
This whole "technically you don't have to pay taxes" bullshit that emo college kids burning their parents tuition and Lesko in his question mark suit love to rattle off about is bullshit.