Published: Sun, January 21, 2018
Hi-Tech | By Ellis Neal

Apple accelerates United States investment and job creation

Apple accelerates United States investment and job creation

At least part of the money, the $38 billion tax bill, will come from a change in US tax law under the Trump administration that lowered the incentive to store cash overseas.

Apple also announced $30 billion in investments in us facilities over the next five years.

Separately, Apple told employees on Wednesday that it is issuing a bonus of US$2,500 worth of restricted stock units.

"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 USA economy", Cook said in Apple's news release.

Trump has described Apple moving back as a "huge win for the US". Apple already has data centers in seven states, including North Carolina, Oregon, Nevada, and Arizona, according to a press release. But the real juice was in structures which helped U.S. multinationals to channel money from overseas markets through Irish subsidiaries and then to offshore tax havens where the cash could be stacked tax free. About 84,000 of Apple's 123,000 workers work in the US.

Apple is a big employer in Ireland with 5,500 employees and has not signalled any intentions to move any of its operations out of this country.

A provision allows for a one-time repatriation of corporate cash held overseas at a lower tax rate than what would have been paid under the previous tax plan.

Capital expenditures in the United States, investments in American manufacturing and a record tax payment account for nearly $75 billion of Apple's direct contribution.

In addition to hiring and spending at existing campuses, the California-based company said it plans to build a new facility at a location that will be disclosed later this year.

Under the new law, companies need only make a one-time payment of 15.5% on repatriated funds, down from 35%. "We have a deep sense of responsibility to give back to our country and the people who help make our success possible", he added. "Great to see Apple follow through as a result of TAX CUTS", Trump wrote on Twitter. Like the fight club, the rules meant no one involved talked about this, and countries like Ireland were able to come up with tax regimes and rules which helped us attract investment from these companies.

Moody's Investors Service estimates $1.4 trillion is being held offshore by USA multinational companies. "They're gonna build plants, they're gonna build a big campus, they're really going to town, so we want to thank Apple". And under the new tax code, Apple would also have been taxed whether it brought the money back or not.

Apple has been seeking planning permission for an €850m data centre in Athenry for nearly three years.

"I hope - I have that faith - that it will be used for great objective for the country, whether that's infrastructure or education, or what have you, that will further supply jobs in the U.S", Apple said about the $38 billion tax payment.

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