Saturday, 19 January, 2019

Apple to 'Contribute' $350 Billion to US Economy Over Next 5 Years

Approval of U.S. leadership fell sharply in President Trump's first year — particularly in Canada where the approval rating fell from 60 percent to 20 percent. In this View Slideshow
Theresa Hayes | 20 January, 2018, 04:07

Later in 2016, then president-elect Donald Trump publicly called out Apple's reliance on China, telling The New York Times that he would "get Apple to build a big plant in the United States, or many big plants in the United States". The tech giant also said it will repatriate overseas cash and pay a $38 billion tax fee.

The speech follows a tweet by the President yesterday in which he stated "Great to see Apple follow through as a result of TAX CUTS". Apple said it was the largest US taxpayer. Apple claimed in its press release it's the "largest us taxpayer" and notes it's now expecting to pay an additional $38 billion in taxes on repatriated overseas profits.

According to the Institute on Taxation and Economic Policy, a research group in Washington, the company has saved $43 billion in taxes through shifting the money under the new terms that is more than any other American company. In December, Apple agreed to pay the disputed amount into an escrow account while it appealed the case in court. Further investment will go into education initiatives.

The company also plans to expand the advanced manufacturing fund it started last spring from $1 billion to $5 billion. That $350 billion estimate doesn't include Apple's tax payments, the tax revenues from employees' wages, and the sale of Apple products. Apple employs 84,000 people in the U.S.

The company also plans to invest $30 billion in capital expenditures in the US, including establishing a new Apple campus to initially house customer technical support operations. The company will invest an additional $10 billion in data centers.

Apple ended fiscal 2017 with $269 billion in cash, cash equivalents and marketable securities.

Apple expects to invest over $30 billion in capital expenditures in the U.S. over the next five years and create over 20,000 new jobs through hiring at existing campuses and opening a new one.

Of course there was no word a new share buyback plan, which is what analysts expect companies to spend much of their newly freed cash on, as was the case during following the 2004 repatriation holiday.

An Apple spokesman declined to comment about the company's plans beyond what was described in the press release. Now, the company has revealed plans on HYPERLINK Wednesday that it will bring back the massive amount of the $252 billion in cash that it kept overseas. The company has in recent years focused on building more facilities in the U.S. We don't know all the details yet, but they say they're going to be paying some $38 billion in taxes, money that they're bringing back into the country.