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The technique is known in tax circles as "outward domestication".
Ms. Trimble said that there was a lot of debate in tax circles about precisely how it would work in practice.
Asked whether he had been muzzled, Mr. Rossotti, who had won wide praise in tax circles for bringing a culture of candor to the I.R.S., refused to comment.
In tax circles, the arrangement is known as "the Delaware loophole". Over the last decade, the Delaware loophole has enabled corporations to reduce the taxes paid to other states by an estimated $9.5 billion.
Trump's plan would dramatically reduce taxes on what is known in tax circles as "pass-through" entities, which do not pay corporate income taxes, but whose owners are taxed at individual rates on their share of profits.
Also on Wednesday, the president said he would be open to providing a corporate tax holiday -- known as "repatriation" in tax circles -- in which for a period of time, companies with cash stashed overseas would be allowed to bring it back to the U.S. at a reduced rate.
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And this would help to attract and retain a pipeline of future top-earners, creating a virtuous tax circle.
In tax policy circles, she said, there has been growing agreement that a reform similar to the 1986 Reagan tax reform is needed — cutting rates and eliminating loopholes and deductions.
This strategy, more or less, was made famous by the trial lawyer and former presidential candidate John Edwards, giving rise to what is sometimes known in tax policy circles as the Edwards Loophole.
As long you only sell the widgets (as opposed to providing after-sale service or support), Public Law 86-272 says that you don't have to pay taxes on 90% of that income known affectionately in tax planning circles as "nowhere income".
It has long been held as an article of faith in such circles that tax strategies within the letter of the law are unimpeachable, even if they abuse the spirit.
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