Tech giant to build new campus, hire 20000 employees

Rodiano Bonacci
Gennaio 22, 2018

Between its spending plan, the hiring of 20,000 workers, tax payments, and business it has with suppliers in the U.S., Apple estimated that it would spend as much as $350 billion in the U.S. over a period of five years.

But most of the $350 billion reflects money that Apple planned to spend with its suppliers and manufacturers in the USA anyway, even if corporate taxes had remained at the old 35 percent rate.

Through this, it would make almost $38 billion in one-time tax payments on its overseas cash, making one of the biggest corporate spending plans announced since the passage of a tax cut approved in law by U.S. President Donald Trump last month. "We have a deep sense of responsibility to give back to our country and the people who help make our success possible".

It plans to spend more than $US10bn on data centres over five years, as part of a $US30bn capital spending plan for the US.

Apple employs about 84,000 people in the United States and expects to spend $US55bn with domestic suppliers and manufacturers this year. More than $10 billion investments of the capital expenditures will go to the data centers of the nation. Apple shares Wednesday ended the day 1.7% higher.

Cook also discussed the company's decision to pay employees $2500 in stock grants, "We're one of the few - we're probably the only company of our size where every person is an owner in the company", Cook said.

After repatriating its cash, Apple will have around $207 billion in its coffers to spend as it wishes - including investments, acquisitions, dividends, buybacks, and more. According to Apple, the new campus will be initially dedicated to technical support for customers, but its role could expand in the future. The US economy will see a major breakthrough because not only is Apple investing $350 billion in the next 5 years, it is also going to be paying a whole lot of tax on it and tax revenue from employee salaries and product sales.

Cramer also related Cook's argument that Apple's investments would have a large effect on the economy.

Not to mention, the $38B they'll pay is actually lower than what they would've paid out had they kept that money in the United States to begin with (at the current 21% corporate tax rate, the taxes on $256B would be $53.7B).

Technically the new law mandates that Apple pay this tax on its foreign cash.

The new campus forms part of a wider set of investments that Apple says will bolster the United States economy, including spending with domestic suppliers and manufacturers.

The new Apple investments, along with the tech giant's present incremental expenditure on domestic suppliers and manufacturers, together make about $55 billion in this year. "You can't have an announcement of a million jobs".

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