ECONOMICS - Legal Offshore Tax Planning? Yes, it Sounds Discriminatory

The last five years of IRS crackdowns on offshore income and bank accounts might make you think anything offshore is illegal. It isn't, although disclosure and reporting are key. Americans must pay U.S. tax on their worldwide income. While they may claim foreign tax credits for taxes paid elsewhere, they still end up with high U.S. taxes even if they pay low rates overseas. See 10 IRS Rules For Stress-Free Foreign Accounts.

http://www.forbes.com/sites/robertwood/2013/02/02/legal-offshore-tax-p