President Donald Trump said in a tweet Wednesday that Apple Inc.'s decision to bring hundreds of billions of overseas dollars back to the United States is a "huge win for American workers and the U.S.!"
Apple is planning to build another corporate campus and hire 20,000 workers during the next five years as part of a $350 billion commitment to the US that will be partially financed by an upcoming windfall from the country's new tax law.
Shortly after Apple's announcements, President Donald J. Trump tweeted that this was a "huge win" and a result of "tax cuts" he pushed through for the US economy. 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. "We have a deep sense of responsibility to give back to our country and the people who help make our success possible", he said in a statement.
Apple, which just spent an estimated $5 billion building a Cupertino, California, headquarters that resembles a giant spaceship, plans to announce the location of a second campus devoted to customer support later this year.
That's what happened past year after Amazon announced it would build a second headquarters in North America to expand beyond its current Seattle home. "From the people who manufacture components for our products to the people who distribute and deliver them, Apple directly or indirectly supports hundreds of thousands of U.S.jobs", Apple says on the page.
However, chief strategy officer of GBH Insights, Daniel Ives, told Mercury News,"It would have been tax suicide if they brought it back before the reform law". Apple said it is also breaking ground Wednesday on a new facility in downtown Reno, which will support its existing Nevada facilities.More news: Trump's clean bill of health inspires 'girther' movement
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Apple said its current pace of spending with domestic suppliers and manufacturers will be an estimated $55 billion for 2018.
"There was an ironclad reason why large-capital tech companies like Apple could not bring (overseas cash) home", said Ives.
Furthermore, out of the 2 million jobs that Apple claims responsibility for, a quarter of them are not direct employments but indirect jobs through Apple's USA -based suppliers.
More than $10 billion of Apple's expanded capital expenditures will be investments in data centres across the US.
The new law lowers the corporate tax rate to 21 percent on USA profits while providing a sharper discount on overseas cash this year.
Apple shares rose 1.65 percent to $179.1 a share Wednesday after it announced its plans.