Apple Inc. AAPL 1.65% said it would pay a one-time tax of $38 billion on its overseas cash holdings and ramp up spending in the U.S., as it seeks to emphasize its contributions to the American economy after years of taking criticism for outsourcing manufacturing to China.
The world’s most valuable publicly traded company laid out its plans Wednesday in a statement that was full of big-dollar figures, though it said that much of the money reflected Apple’s current pace of spending.
Apple said it would invest $30 billion in capital spending in the U.S. over five years that would create more than 20,000 jobs. The total includes a new campus, which initially will house technical support for customers, and $10 billion toward data centers across the country. It also will expand from $1 billion to $5 billion a fund it established last year for investing in advanced manufacturing in the U.S.
Apple’s $38 billion tax commitment is the largest such sum announced in response to the major overhaul of the U.S. tax code that President Donald Trump signed into law late last year. That law included an incentive for U.S. companies to bring home offshore holdings, with companies required to pay a one-time tax of 15.5% on overseas profits held in cash and other liquid assets.
U.S. companies have long pushed for such a change to enable them to repatriate overseas cash without what they considered an excessive tax hit. Apple on Wednesday cited the tax changes as the reason for its $38 billion payment. It didn’t say how much of its $252.3 billion in overseas cash holdings it plans to bring home, though it will be the vast majority, Chief Executive Tim Cook told ABC News in an interview.
More at the WSJ
So, a pathetic 1 – 2% growth, high unemployment, low labor participation, most jobs part time and/or low paying, businesses running overseas economy is, according to the liberals at the time, “booming” but a 4% growth, manufacturing jobs, companies coming BACK, new investments, high labor participation, low unemployment growing economy is a “disaster”.
Pelosi could be right; this could be Armageddon… for Democrats.
Yeah I know this and all the related stories were in the works under Obama. Just waiting for the usual suspects to come with that.
Looks like the high tax hyper regulation revolt is getting some shoes. https://thepoliticalinsider.com/new-california-declares-independence
@kitt: There is NO WAY liberals in California would allow that to happen. They need the tax revenue too badly; California is already so far into debt as to assure it is never going to be paid back. So, how is THAT shared? San Francisco, LA, Sacramento and any other sanctuary for criminal illegal immigrants are not going to pay their debts… that ain’t the liberal way.
Good for Everywhere Else, California for seeing the problem, but they don’t have much hope of avoiding being dragged down into the liberal abyss with the self-destructive liberals.
@Bill… Deplorable Me: It isnt up to California its up to congress to recognize the new state, seeing possible republican electoral votes. Now is the time with Republicans in majority. I say they call it Not California, instead of New California, they may need a wall.
Just the overseas cash from Apple almost is the equal of the entire National debt for a year!
Bringing that back here for investing and spending will make a huge difference in our national economy.
@kitt: But I thought the article said the state legislature had to approve as well.
First Amazon now Apple looking to build 2th headquarters. Are they getting tired of being taxed to death by the states there in?