Let's create a simple example of how the tax saving may have worked ( this is very simplified assuming pre-2018 tax law, just so you understand the big picture of how tax havens work; but note, tax laws and rates change over time!). Assume Nike set up a Bermuda subsidiary to hold the Nike trademarks, patents, and technology, at a time when the U.S. corporate tax rate was 35% and the Bermuda corporate tax rate was 0%. In that year 20xx, Nike earned $10 billion in U.S. profits (before licensing payment to subsidiary), and paid $6 billion to the Bermuda subsidiary for the right to license the Nike Trademarks, patents, and technology. For questions 1 and 2, further assume that Nike does not repatriate any profit from the Bermuda subsidiary to the U.S. (again, we are keeping this really simple, no need to overthing, it's just to get the big picture point)

3. How much would Nike owe in additional U.S. taxes if it repatriated the Bermuda profits back to the U.S. (when the U.S tax rate was 35%)?