Tech

Apple cash heads back to US

Apple cash heads back to US

Cook refused to "take a position" on how the new tax plan will affect individual Americans but commented on the corporate tax saying, "I do believe the corporate side will result in job creation and a faster growing economy". Now, after the newly enacted tax law, Apple can bring that money back to the United States at a lower tax rate.

Apple Inc. announced a $38 billion tax windfall for the us government this week, but the biggest beneficiary of the company's response to tax-system changes will likely be its shareholders, analysts say.

Apple's $38 billion in repatriation tax payments is also getting a lot of attention.

Apple announced plans on Wednesday to contribute more than $350 billion into the economy over the next five years, and hire at least 20,000 workers as part of a new set of investments.

As Amazon closes in on the location for its second campus, now codenamed HQ2, is Apple planning its own search for Apple HQ2?

Apple shares closed the official Nasdaq trading day at a record high of $179.10. "The location of this new facility will be announced later in the year", Apple said.

Apple claimed it would be making a staggering $350bn "direct contribution" to the United States economy over the next five years.

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Apple also informed that it is planning to add more workers at the company's second campus, which is expected to house a technical support initially for customers.

Apple made its decision following the recent passage of landmark tax reform legislation by Trump and the Republican controlled congress. Apple will bring back $350 billion to the USA over the next five years, will open another campus and create 20,000 domestic jobs.

The location of Apple's new facility will be revealed later this year.

Moormann said Apple will find no shortage of communities willing to offset Apple's federal tax burden with local tax incentives, just as Amazon found willing bidders for its high-tech jobs a year ago. Corporations that have engaged in offshore shell games have been richly rewarded for that gamble by the new tax bill's deemed repatriation tax break.

Analysts have suggested the tax changes will see Apple return more cash to shareholders as it repatriates funds from overseas, as well as making it more likely the company could embark on acquisitions.

We also know how much our employees value giving back to the communities where we all work and live. The company has in excess of $250 billion held overseas. Amazon has argued that its campus will create billions of dollars in economic opportunity for the municipality it chooses and plans to make its final selection this year.

In its December approval of the most extensive tax-code revisions since 1986, Congress scrapped the arrangement that had allowed companies to defer US income taxes on foreign earnings until they returned the income to the US, Bloomberg said.