Apple Planning New Campus in US, Repatriating Cash

Apple Planning New Campus in US, Repatriating Cash

Apple announced on Wednesday it would pay about $38 billion in taxes - likely the largest payment of its kind - on profits repatriated from overseas as it boosts investments in the United States.

Now the time is ripe to bring this money back to the states because: 1) A new tax bill allows businesses to transfer money at a much lower rate, and 2) They're facing mounting pressure to pay up overseas (the European Union recently ordered them to pay Ireland $15.4B in back taxes). However, Apple doesn't break out its spending in the USA, making it hard to gauge how much of the $30 billion over five years it announced Wednesday is new.

New U.S. tax rules mean companies like Apple can no longer avoid paying taxes on past worldwide profits by holding the cash outside the United States.

As Erik Gordon, a professor at the University of Michigan's Ross School of Business told the publication, Apple's decision to add more jobs to the USA could serve to provide President Donald Trump with the political points that he now sorely needs. That incudes investments in current co-located facilities and a newly announced project in Iowa.

The company did not say how big the second campus would be or how numerous additional 20,000 workers it planned to hire would be based there.

Apple now keeps some of its estimated $256 billion cash hoard abroad, but it did not say how much is stored overseas or how much it was repatriating to the U.S. The spree will include the new campus, new data centers and other investments.

Apple has announced that it will invest and spend about Dollars 350 billion in the United States in the next five years creating some 20,000 jobs in the country.

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This figure is not including Apple's ongoing tax payments, the tax revenues generated from employees' wages and the sale of Apple products, the company said.

The tech giant will also increase the size of the Advanced Manufacturing Fund from $1 billion to $5 billion to support innovation among American manufacturers and help others establish a presence in the United States.

CEO Tim Cook also tweeted images Wednesday of a groundbreaking ceremony for a data center in Reno, Nevada. That anticipated tax bill implies Apple intends to bring back about $245 billion of its overseas cash, based on the temporary tax rate of 15.5 percent on foreign profits. In what Apple calls a "direct contribution to the USA economy", the tech archetype is adding to their already expansive workforce surpassing 2 million in total.

"Financial analyst Gene Munster told NPR, "[Apple's] testing have found that people really want to talk to someone for support that's based in the country that they're calling from and so Apple their biggest base so they want to accommodate that.

"Nothing has changed", a spokesman for the European Commission said, with regards to its 2016 ruling that Apple received illegal state aid in Ireland through sweetheart tax deals with the government.

Cities across the country have expressed an interest in hosting the new campus.