Apple Inc (NASDAQ: AAPL) announced they will make a $350 billion contribution to the U.S. economy over the next five years and a record tax payment upon repatriation of overseas profits.
Citing changes to the U.S. tax code as a result of the Tax Cuts and Jobs Act, the nation’s largest taxpayer said Wednesday they will bring back approximately $250 billion in overseas cash to the U.S., paying a record $38 billion repatriation tax.
“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.”
Repatriation and investments in American manufacturing over five years will account for approximately $75 billion of Apple’s direct contribution.
“We have a deep sense of responsibility to give back to our country and the people who help make our success possible,” Mr. Cook added.
In December, President Donald Trump signed the first overhaul to the U.S. tax code in more than 31 years, which slashes the corporate tax rate from the highest in the developed world to 21%. It’s a long-sought policy that data show does boost wages.
Within hours of final passage, U.S. businesses began announcing wage increases, bonuses, investments and other benefits.
While the list continues to grow, by the end of the first week in January no less than 133 companies had announced bonuses, increased wages and other employee benefits for at least 2 million Americans as a result of the Tax Cuts and Jobs Act.
The entire list can be viewed at Americans for Tax Reform.
Apple said in the press release it 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. While they already employ 84,000 people in all 50 states, estimates suggest Apple is responsible for creating and supporting over 2 million jobs across the U.S.
The company said they will announce the location of its new campus facility sometime later in the year, which will initially house technical support for customers. Today, they broke ground on a new facility in downtown Reno, Nevada, which will support its existing facilities in the state. The new campus will also be powered entirely by green energy such as solar, wind and micro-hydro power.
The Advanced Manufacturing Fund announced last spring will be increased from $1 billion to $5 billion. It supports projects with manufacturers located in Kentucky and rural Texas.