Of course everyone gets taxed as per their local laws they fall under. But you brought up the question of IRS and what I am saying and what you basically seem to agree to is that as a foreign entity you normally do not have obligations with the IRS. IRS requirements and obligations are for US entities. And if you are not a US company - even just a foreign subsidiary of a US-company - you normally shouldn’t have matters with the IRS at all and therefore you don’t have to issue whatever IRS forms to the people you pay.
And that was the point that @jtolio was ‘complaining’ about. The amount of taxes to pay does not play a role at all here:
The United States has a rule that if node operators earn more than $600/year,
we need to file a 1099 for each of them. Our current way of dealing with this
is manual and time consuming, and so it would be nice to automate it.
He also described what is all required to keep track of.
The blueprint discusses a technical way to deal with the requirements, my thinking was about a legal way based on tax and company laws. Here is quick Google link that I found to backup my thoughts:
“Do you know, if a foreign based company is not required to provide a 1099-misc, what form do you use to report income on your tax return? Thanks!”
"No, the IRS rules regarding Form 1099-MISC do not apply to foreign entities operating outside the US. However, a foreign-based company with an office in the US would be required to prepare 1099-MISC under the IRS rules.
As this link suggests, there is no obligation to issue (whatever) IRS forms or keep track of any of them for a foreign company. This could make running satellites and paying node operators much easier if you are not a US company as then it would fall under the sole responsibility of the node operators to report their earnings to whatever authorities they have to report it.
All tech giants - thus my example with Microsoft - are operating multiple foreign subsidiaries for various reasons, so it is not considered tax evasion or even illegal per se. And if such a corporate construct could help to save valuable resources, then I see nothing wrong with thinking about such an option. But as I have said it before, to be legally on the safe side you would have to consult with an appropriate tax lawyer as international tax and company laws are tricky.