Tomorrow morning a bright young 42-year-old and her husband and child, leave on an all-expenses-paid business trip to Dubai to discuss working with people who want her there. She is an excellent maker of wedding cakes and is in high demand. She is being offered very good money to leave for Dubai, where things are tax free.
More and more young entrepreneurs will LEAVE the USA and not pay taxes, retaining the right to return when they are older or if things go bad overseas. In the meantime the ridiculous taxes paid here, will not be paid by them.
You are badly misinformed. American citizens owe taxes on all income, no matter the source or their place of residence. You can not report your income, but I would not count on a happy welcome when you try to use your "right of return" in the future. Expect IRS agents to sieze you at the aiport and jail you for tax fraud.
The exemption is approximately $85K per year, indexed to inflation. Earn less than that in taxable income and the IRS does not require taxes to be paid. They ask that you file, however.
another note: I am not the wedding cake maker in question. And am definitely a dude :-)