Apple To Pay $38B In Taxes To Repatriate Overseas Cash, Invest $350 Billion Into US Economy
Apple is happy with the Trump administration new tax policies that will allow it to bring a massive stash of cash that's been stuck overseas back to the U.S. Apple has announced what it plans to invest in when that massive stockpile is back in America (other than possibly buying Netflix). The company will concentrate on three areas with the investments where it says there will be the greatest impact on job creation.
The areas include direct employment by Apple, spending and investment with Apple domestic suppliers and manufacturers, and fueling the "fast-growing" app economy. Apple notes that new investments along with its current pace of spending with domestic suppliers and manufacturers is estimated at $55 billion for 2018. Apple writes, "Apple’s direct contribution to the US economy will be more than $350 billion over the next five years, not including Apple’s ongoing tax payments, the tax revenues generated from employees’ wages and the sale of Apple products."
Apple has planned expenditures for the U.S. that include investments in domestic manufacturing over the next five years and along with a record tax payment when the cash is repatriated the impact will be about $75 billion.
"Apple is a success story that could only have happened in America, and we are proud to build on our long history of support for the US economy," said Tim Cook, Apple’s CEO. "We believe deeply in the power of American ingenuity, and we are focusing our investments in areas where we can have a direct impact on job creation and job preparedness. We have a deep sense of responsibility to give back to our country and the people who help make our success possible."
The repatriation taxes alone on the money Apple will bring to the U.S. will be about $38 billion. This will be the largest payment of its kind ever made says Apple. Over $30 billion will be invested in capital expenditures over the next half decade and will directly create 20,000 new jobs with hiring at existing Apple campuses and the opening of a new campus. That new campus will initially house technical support for customers and will be announced later in the year.
Apple plans $10 billion to invest in data centers across the States. That incudes investments in current co-located facilities and a newly announced project in Iowa. Apple is also breaking ground on a new facility in Reno, Nevada to support existing Nevada facilities. Apple is also increasing the size of its Advanced Manufacturing Fund from $1 billion to $5 billion. That fund will support innovation among American manufacturers and will help other manufacturers establish a presence in the States.
Apple also plans to invest in helping get students ready for the App Economy. Apple wrote, "To address the coding skills gap and help prepare more people for jobs in software development, Apple created a powerful yet easy-to-learn coding language called Swift, the free Swift Playgrounds app and a free curriculum, App Development with Swift, which are available to anyone and are already being used by millions of students at K-12 schools, summer camps and leading community colleges across the country. Over 100,000 students and teachers have also attended coding classes at Apple retail stores."
"Apple will expand these initiatives and add new programs to support teachers and teacher training. The company is also increasing funding for its ConnectED program, so students in historically underserved communities have a chance to learn app coding skills and enjoy other benefits of technology in the classroom."
