Tech

Apple to pay $38 billion on overseas cash pile

Apple to pay $38 billion on overseas cash pile

Apple also announced it broke ground on Wednesday at a new facility in Reno, Nev., to support its existing facilities in the state. But, reading between the lines, it's also a carefully crafted PR drill meant to stave off criticism and curry some favor with Washington. Apple's spending will be aided by the repatriation of billions of dollars in foreign profits, thanks to recent US tax reform.

The company said Wednesday that it will pay $38 billion in taxes on cash it has been keeping overseas.

The state and city awarded the company a combined $213 million in tax incentives. The bold initiatives mentioned, and the reasons for them, often have nothing to do with the tax breaks. As a result, went the argument, this could lead to more jobs and higher stock prices in the United States.

Apple's statement today contains some of those traits.

Amid increasing pressure from US President Donald Trump to make investments in the country, the company has stressed that it is contributing billions of dollars to the US economy by doing business with American software developers and suppliers. "Huge win for American workers and the U.S.!" That $350 billion estimate doesn't include Apple's tax payments, the tax revenues from employees' wages, and the sale of Apple products.

"Apple CEO Tim Cook has been a critic of American tax laws".

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Apple said it will increase its local manufacturing fund, announced previous year, from $1bn to $5bn, indicating that it will be sourcing more components for its products domestically. We're seeing several companies slashing jobs while Apple comes in to say that they're investing more. The campus will initially house technical support for customers and, like all of Apple's USA facilities, will be powered by renewable energy.

Apple is joining a growing list of USA tech giants looking at how to handle their large amounts of cash generated by overseas sales.

I promised that my policies would allow companies like Apple to bring massive amounts of money back to the United States. It has not repatriated that money to its home country, as it would have been subjected to a 35% tax.

Apple is likely to use some of the repatriated cash to boost its returns to shareholders through increased buybacks and dividends, Rakers said. Apple was not forthcoming on more specific details about the campus.

Despite many employees' transition into the newest campus, Apple Park, not yet being complete, it makes sense for a company of Apple's scale and growth to continue expanding its corporate footprint.

Still, adding a significant number of new U.S.jobs, even if they don't involve manufacturing, is a good way to deflect at least some of those criticisms. It's unclear if the company plans to build the manufacturing facilities mentioned by Trump.