Are you referring to double-taxing or the US's "taxing income earned abroad" policy? It looks like the US has many tax treaties[0], and it's my understanding that these treaties will usually shield you from double-taxation.

What the US does do, however (as I understand it), is tax you on the difference between the income tax you pay in a foreign country and what you would pay if you were in the US. In other words, living in a foreign country with lower income tax than the US won't let you avoid paying at least as much income tax as if you were still in the US. (And if you move somewhere with higher taxes the US won't charge you any extra (nor give you tax credits! :P).)

0 - https://www.irs.gov/Businesses/International-Businesses/Unit...

Extra paperwork (especially when you have to deal with paperwork in multiple languages) can get insanely expensive, though. Which makes the "incorporate outside the US" ineffective.