Apple brings billions of Dollars back to the US
Apple hoarded gigantic sums abroad, then came Donald Trump. Because of its tax reform, the company must pay probably 38 billion dollars in the US. It also promises thousands of new jobs.
Apple has announced in the wake of the US tax reform billions of dollars in spending in the home country. It wants to invest $30 billion in the US over the next five years, said the technology company in Cupertino, California.
In addition, 20,000 new jobs are to be created in existing locations, and Apple also wants to open a new campus for its employees.
"Apple is a success story that could only have happened in America, and we're proud to continue our story while supporting the US economy," said Apple CEO Tim Cook.
In addition, Apple announced that it expects a tax payment of about 38 billion dollars on capital, which was previously outside the US - and now to be brought back to the home country.
US corporations like Apple or Microsoft are hoarding billions of dollars abroad. One of the objectives of the recently enacted tax reform by President Donald Trump is to redirect these funds back to the United States.
The shares of Apple reacted slightly positive to the news and noted on Wednesday evening around 0.5 percent plus.
Source: bam/dpa
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I wonder how much this truly helps the US economy . . . Apple is investing that money abroad, which benefits US shareholders.
It's been interesting to see this sort of thing happening in the US, whereas in Australia our government has passed a bunch of legislation to punish companies that try and move their funds offshore.
Kinda makes an argument that creating favourable business conditions which naturally lead companies to make decisions that benefit the country.
Thank you for this news :)
Some good news for once. This should help the employment numbers.