Apple, Returning Overseas Cash, to Pay $38 Billion Tax Bill

[Calista241]

Source: Bloomberg

Apple Inc. said it will bring hundreds of billions of overseas dollars back to the U.S., pay about $38 billion in taxes on the money and spend tens of billions on domestic jobs, manufacturing and data centers in the coming years.

The iPhone maker plans capital expenditures of $30 billion in the U.S. over five years and will create 20,000 new jobs at existing sites and a new campus it intends to open, the Cupertino, California-based company said Wednesday in a statement. Apple’s shares rose 1.7 percent to a record closing price of $179.10 in New York.

“We are focusing our investments in areas where we can have a direct impact on job creation and job preparedness,” Chief Executive Officer Tim Cook said in the statement, which alluded to unspecified plans by the company to accelerate education programs.

Apple also told employees Wednesday that it’s issuing stock-based bonuses worth $2,500 each following the new U.S. tax law, according to people familiar with the matter.

Read more: https://www.bloomberg.com/news/articles/2018-01-17/apple-expects-38-billion-tax-bill-on-overseas-repatriated-cash

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Trump is still a dick.

[sinkingfeeling]

1. This will last until the end of the year and then it will be business as usual.

[not fooled]

2. Looks like

they are paying 15% tax on that money.

[sandensea]

3. They'll probably bringing back 5-10% of that.

Big corporations have become quite adept at the investment headline scam: they announce some astronomical investment, reap all the goodwill, and then, once the media has long forgotten the announcement, invest about 5 to 10% of the much-touted figure - usually what they would have invested anyway.

[Hoyt]

4. I agree, "trump is still a dick." But we better prepare for trumpsters taking credit for this one.

He and the GOPers are going to claim the tax plan is the catalyst and there is probably some truth in that in that Apple and a lot of other companies have been looking for the right time to repatriate money.

Heck, Obama wanted to do something too, but GOPers wouldn't cooperate. But the trumpsters aren't going to listen. After whatever companies want to repatriate money do so, it would be a good time to pass laws to help prevent hiding money offshore in the future.

[hibbing]

5. See how much they get from states

Just like the Foxconn scam in Wisconsin and all the cities vying for Amazon. Socialize the costs, privatize the profits, American capitalism at its best.


Peace

[Woodycall]

9. Now increased by 50% to 4.5 billion n/t

[pecosbob]

6. The thing is kind of making my head spin

If we allow corporations legal rights as individuals then how do we hold these entities accountable? They don't seem to be accountable for much currently. McKesson gets caught selling their opioids to shady internet drug dealers and nothing happens. Wells Fargo illegally opens millions of new accounts so they can rip off all their customers and nothing happens. Big Energy does what Big Tobacco couldn't and declares day to be night and night to be day and nothing happens. We all know this story by this point in the game.

My question is at what point will corporations realize their long-term well being is directly tied to the well-being of those who consume their products and that of the communities in which they live? I mean, even a plutocrat like Henry Ford knew this basic premise.

[essaynnc]

7. Just one question...

I haven't seen this in any article yet: How much did Apple save in taxes, that they're so willing to put on the charade of a huge investment in America??? I'll bet you a dollar that it's a lot more than they're eventually going to invest.... Anybody know?

[BigmanPigman]

8. Good question and good point. I would like to know too.

[zentrum]

12. 252B.

See below.

[BigmanPigman]

13. I knew it was a lot...

not surprised a bit! Thanks.

[zentrum]

11. From Fortune Magazine

Apple said last week that it had accumulated $252 billion of cash, 94% of it held offshore. That is largely a result of the tax avoidance strategies that shift profits from sales in Europe, Asia, and the Middle East out of any country’s direct tax jurisdiction. But Apple cannot bring the untaxed profits back into the United States without paying the U.S. 35% rate, so it keeps the money offshore.

You can see this quote pre-dates Trumps tax cut. But the key is that whatever the rate, the damn company should just pay its taxes, especially given how it relies on our infrastructure and educated (in debt) work force.

[zentrum]

10. As I understand it, Apple

…is keeping 252B of-shore, beyond taxes.

So 38B for this Kingdom is a pittance.