Yeah, that's the biggest and most obvious loophole that came to mind with the idea. The ideal view is "well that's another probably million dollar company and they are subject to the same rules", but it feels like a game of Matryoshka. How many layers of outsourcing to we get to before the next doll is unsustainable?

I think at the very least a company should be taxed for contracting a service they are able to pay for in-house. But there's a lot of factors to consider.