Apple steps up U.S. investment after tax changes

Apple We'll pay $38B in taxes and add 20,000 jobs in the U.S

Besides dramatically lowering the standard corporate tax rate, the reforms offer a one-time break on cash held overseas. A comprehensive study by the Senate Homeland Security and Government Affairs Committee reviewed the last time the USA allowed firms to bring back overseas cash at a discounted rate-in 2004.

Apple is to pay $38bn in U.S. tax payments on the $252bn in overseas cash once held by some of its Irish subsidiaries.

Apple is making massive investments in the US economy over the next five years, and workers will be the big beneficiaries.

It has also been reported by Bloomberg that an undisclosed number of Apple employees will receive stock bonuses worth $2,500 each.

Analysts have also predicted that most of those overseas profits will flow into stock buybacks and dividend payments.

Apple will pay about US$38bn in tax on the roughly US$ 250bn cash pile it holds outside the United States following recent changes to American tax rules.

"The Commission's 2016 state aid decision found that, over many years, tax rulings issued by Ireland had allowed Apple to pay less tax on profits recorded in Ireland than other companies subject to (the) same national taxation laws". Another factor that could help Cincinnati is that OH was a strong contender in the 2017 site selection process for a manufacturing plant by Apple supplier Foxconn Technology Group.

Apple just made a bunch of big promises to the American economy. It means the company effectively dodged more than $40 billion it would've otherwise paid.

The White House applauded Apple's commitment. "And Apple hasn't historically done big M&A", he said. Currently, Apple says that it employs around 84,000 people in the U.S. On the other hand, an October filing with the Securities and Exchange Commission shows that it totals 132,000 full-time employees worldwide, showing that about a third of its employees work overseas.

Trump has described Apple moving back as a "huge win for the US".

The Cupertino firm is looking at creating about 20,000 new jobs in the future, which will be available at existing sites as well as a new campus that it is planning to open. Amazon recently also undertook a similar process that goes by the name of "HQ2", in which the e-commerce giant solicited bids from American cities asking where it should spend an estimated amount of $5 billion building a new, second headquarters to accommodate 50,000 employees.

Amazon is expected to announce the winning bid later this year.

Apple said on Thursday that it will not hold a bidding process when it chooses the site for a planned new United States campus, marking a stark difference from the public contest that has held for its second headquarters.

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