[gnicholas]

The first point of failure is that if you are a US taxpayer, then you are already taxed on your worldwide earnings, including the earnings of your wholly-owned foreign subsidiary. Even if you could borrow domestically against your foreign earnings in order to finance your lifestyle, you would have already been taxed on those foreign earnings, as an individual.

[donmcronald]

How do big corporations get away with it? Is it because they aren't wholly-owned by an individual?

Edit: NVM. I saw your explanation in another comment. Good info :-)

[themaninthedark]

You are taxed but the starting tax threshold is high, 150~200K if I recall correctly.

I worked in Japan for a while and had to file but never paid taxes.

[RhodoYolo]

if you're spending US money. Someone you describe may set up properties outside the US not taxable by the US.

[gnicholas]

Sure, by my original point was that you get taxed before you even get to that step.