Apple Plans A $350 Billion Contribution To The US Economy

Apple Plans A $350 Billion Contribution To The US Economy

Apple Plans A $350 Billion Contribution To The US Economy

Through this, it would make almost $38 billion in one-time tax payments on its overseas cash, making one of the biggest corporate spending plans announced since the passage of a tax cut approved in law by U.S. President Donald Trump last month.

In a New Year gift to President Donald Trump, Apple has committed to invest $350 billion in the United States over the next five years that includes creating 20,000 new jobs and an anticipated repatriation tax payments of $38 billion as required by new laws.

Investors have, however, said they'd give the company more flexibility for future buybacks or pay dividends. It has also invested in community colleges and creating a tutorial for Apple users to learn how to code at its stores. The planned bonus, reported earlier by Bloomberg, adds Apple to the growing list of companies that are rewarding employees due to the new tax law. Companies can pay over eight years.

In an interview with ABC News last night, Apple CEO Tim Cook (pictured above) offered carefully worded responses about the tax bill's impact on his company's capital spending plans, noting that it would have made some of the intended investments one way or the other. Job creation was a key pillar of Trump's election campaign. Apple will pay 15.5% in taxes to repatriate overseas cash which suggests that the company will repatriate $245 billion, or nearly all of its foreign money.

"You know, there's nothing like jobs to give people a sense of objective", he said.

Apple already has data centers in seven states.

Other investments will go into domestic suppliers, manufacturing partners and education focused on app development. Apple employs 84,000 people in the U.S.

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It's now 17 months since European Union regulators ordered Ireland to recover €13B ($15B) from Apple in underpaid taxes, and a payment schedule has finally been agreed on. "Huge win for American workers and the US!"

On Wednesday, Apple announced to contribute more than $350 billion to the U.S economy and funnel it into job creation along with a new training campus for workers.

Given the new corporate tax rate of 15.5 per cent, that indicates Apple is returning around US$245 billion in cash to the United States. "And Apple hasn't historically done big M&A", he said.

As part of Apple's "commitment to support the American economy and its workforce", the initiative announced Wednesday commits $55 billion to the U.S. economy in 2018.

Tax reform recently passed by the US Congress has been touted by Trump as a way to stimulate investment and hiring, despite criticism that it mostly benefits corporations and the wealthy.

Apple has the largest offshore cash reserves of any United States company, with about $252 billion at the end of September 2017. Additionally, the press release said that "capital expenditures in the USA, investments in American manufacturing over five years and a record tax payment upon repatriation of overseas profits will account for approximately $75 billion of Apple's direct contribution". The new location, which Apple said it will announce later this year, will be similar to the company's existing campus in Austin, Texas, for supply-chain and technical-support employees.

Apple also said it would boost its advanced manufacturing fund, used to provide capital and support to suppliers such as Finisar Corp and Corning, from $1bn to $5bn.

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