On Wednesday, Apple made a HUGE announcement about contributing to the US economy, and we couldn’t be happier!
Two weeks ago, we told you that Apple said they will bring back hundreds of billions from overseas because of the lower taxes they’ll be paying, but now they have laid out specific details about how they will use that money.
In a new press release, Apple said that they will contribute $350 billion to the U.S. economy over the next 5 years and create more than 20,000 new jobs!
Here’s more from CNBC:
Apple also said it anticipates a $38 billion tax bill for repatriated cash, as a result of the new tax bill. This implies it will bring back virtually all of its $250 billion in overseas cash.
About $10 billion in capital expenditures will be investments in U.S. data centers, the company said.
Apple also says it will spend $5 billion as part of an innovation fund, up from the $1 billion it previously announced CNBC’s “Mad Money.”
The announcement raises the bar for the world’s most valuable company — now a huge driver of the economy — to continue its dominance and growth in the wake of political pressure on big tech companies.
The job creation will focus on direct employment, but also suppliers and its app business, which it had already planned to grow substantially.
Here’s more information directly from Apple’s press release:
Combining new investments and Apple’s current pace of spending with domestic suppliers and manufacturers — an estimated $55 billion for 2018 — 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.
Planned capital expenditures in the US, 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.
“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.”
Apple, already the largest US taxpayer, anticipates repatriation tax payments of approximately $38 billion as required by recent changes to the tax law. A payment of that size would likely be the largest of its kind ever made.
Apple expects to invest over $30 billion in capital expenditures in the US over the next five years and create over 20,000 new jobs through hiring at existing campuses and opening a new one. Apple already employs 84,000 people in all 50 states.
Twitter rejoiced after hearing this:
This is a serious announcement/investment etc. This would be the largest repatriation tax bill in the history of the Internal Revenue Service (IRS). https://t.co/9mEo7oHaf2
— Richard Baris (@Peoples_Pundit) January 17, 2018
Apple announces $350 billion investment, 20k jobs over 5 years https://t.co/krEBgtMODV
— Bill Mitchell (@mitchellvii) January 17, 2018
— Jim Hoft (@gatewaypundit) January 17, 2018
— 9to5Mac (@9to5mac) January 17, 2018
APPLE…world's 2nd Most Valuable Brand.
Will contribute 20,000 NEW JOBS the next 5 years.
Over that same span will invest nearly $350 BILLION in #USA's economy.
Repatriated Assets will yield $35-38 Billion to US TREASURY.
CNN, CBS, NBC, ABC, NOT TALKING ABOUT IT!#MAGA #TRUMP pic.twitter.com/Ti3JkdH6jJ
— T.W. Haines (@T_W_Haines) January 17, 2018
Once again, Trump is MAKING AMERICA GREAT AGAIN!