Apple to Pay $38 Billion in Repatriation Tax; Plans New US Campus

Apple to Pay $38 Billion in Repatriation Tax; Plans New US Campus

Apple Inc. said Wednesday it plans to pay $38 billion in repatriation taxes on profits and cash held overseas following the enactment of the new tax law. Let's start with the big picture investment of $350 billion, which Apple says does not include ongoing tax payments, the tax revenues generated from employees' wages or the sale of Apple products.

CEO Tim Cook also tweeted images Wednesday of a groundbreaking ceremony for a data center in Reno, Nevada.

In fact, Apple employs 84,000 people in the United States, including retail employees, it said on Wednesday.

These investments will allow Apple to create over 20,000 new U.S.jobs over the next five years, the company said.

The company also plans to expand the advanced manufacturing fund it started last spring from $1 billion to $5 billion.

Apple said at the time that reforming the global tax system to make it simpler is "essential" and needed to "remove the current tug of war between countries over tax payments".

Apple just made a lofty promise to the American economy. The company recently agreed to pay more than US$100 million in taxes to British authorities after an audit.

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Apple has the largest offshore cash reserves of any U.S. company, with about US$252 billion at the end of September, the most recently reported fiscal quarter.

Apple stock ticked higher after investors heard everything the company is planning to do for the U.S. economy. Reuters Breakingviews estimated that Apple could have increased us headcount by 24,000 in the last five years.

The White House applauded Apple's announcement and attributed this to the tax reforms of President Donald Trump.

James Cordwell of Atlantic Equities said Apple's USA investment plan could make it easier for the company to give more cash to shareholders.

With the dust still settling on its new spaceship campus in Cupertino, Apple announced plans to build another facility.

The world's most valuable company, Apple has Apple today announced a new set of investments to build on its commitment to support the American economy and its workforce. "And Apple hasn't historically done big M&A", he said.

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