Trump's Tax Reform: Apple to repatriate $245 billion

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Apple's $245 billion repatriation is part of their, just announced, plan to invest $350 billion in the US economy over the next 5 years.
JAN 17, 2018 @ 03:37 PM
Apple Says It Will Bring Cash Back To U.S., Pay $38 Billion In Repatriation Tax

Kelly Phillips Erb , FORBES STAFF

Apple is bringing cash home. That was the announcement from the tech giant in a statement on its website, saying:

Apple, already the largest US taxpayer, anticipates repatriation tax payments of approximately $38 billion as required by recent changes to the tax law. A payment of that size would likely be the largest of its kind ever made.
As of September 30, 2017, the company's SEC filings indicated that cash, cash equivalents and marketable securities held by its foreign subsidiaries totaled $252.3 billion. The company noted on the filing that "Amounts held by foreign subsidiaries are generally subject to U.S. income taxation on repatriation to the U.S."

Assuming that Apple is repatriating cash (or cash equivalent), under the new 15.5% repatriation tax rate, that means the company plans to repatriate just over $245 billion which would be close to the total held overseas. An email to the company confirming that to be the case was not immediately returned.

Before the new tax law, U.S. companies were subject to tax on all profits, no matter where they were earned. That changed under tax reform. Now, U.S. companies only pay tax on profits earned in the U.S. However, companies like Apple had already stockpiled assets overseas since bringing the funds over to the U.S. would have triggered a tax.

[...]​
https://www.forbes.com/sites/kellyphillipserb/2018/01/17/apple-says-it-will-bring-cash-back-to-us-pay-38-billion-in-repatriation-tax/#1b942822226c

$38,000,000,000 / 0.155 = $245,161,290,300


PRESS RELEASE
JANUARY 17, 2018
Apple accelerates US investment and job creation

[...]

Combining new investments and Apple’s current pace of spending with domestic suppliers and manufacturers — an estimated $55 billion for 2018 — Apple’s direct contribution to the US economy will be more than $350 billion over the next five years, not including Apple’s ongoing tax payments, the tax revenues generated from employees’ wages and the sale of Apple products.

[...]

Apple, already the largest US taxpayer, anticipates repatriation tax payments of approximately $38 billion as required by recent changes to the tax law. A payment of that size would likely be the largest of its kind ever made.

[...]

https://www.apple.com/newsroom/2018/01/apple-accelerates-us-investment-and-job-creation/?imgid=1516125613072

Apple CEO cites tax reform as driver...

Apple CEO Tim Cook cites GOP tax reform as driver in $350B US investment
By Mikey Campbell
Wednesday, January 17, 2018

Following Apple's announcement of plans to repatriate a chunk of its overseas cash to infuse some $350 billion into the U.S. economy over the next five years, CEO Tim Cook took part in an interview addressing the company's investment strategy, the iPhone slowdown controversy and more.

Speaking with ABC News' "World News Tonight with David Muir," Cook discussed the intricacies of Apple's forthcoming investment, which will incur a foreign tax bill of $38 billion.

Earlier on Wednesday, Apple foreshadowed a major shift in financial policy when it announced plans to repatriate a portion of its overseas cash hoard, a move that will pump $350 billion into the U.S. economy. That money will in part go toward a new campus and the generation of 20,000 jobs.

The company expects to pay $38 billion in taxes on the repatriated funds, a sum it says is the largest ever of its kind.

In a one-on-one with reporter Rebecca Jarvis, Cook explained that recent U.S. tax policy changes allowed for the huge capital commitment. Still, the executive insists that some changes, perhaps the grant of employee stock bonuses, would have been made "in any situation."

"Let me be clear, there are large parts of this that are a result of the tax reform, and there's large parts of this that we would have done in any situation," Cook said.

Jarvis suggested President Trump's tax bill is a "huge windfall" for Apple, a statement Cook did not directly refute.

"There are two parts of tax bill, there's a corporate piece and an individual piece," Cook explained. "I do believe the corporate tax side will result in job creation and a faster growing economy."

[...]

http://appleinsider.com/articles/18/01/17/apple-ceo-tim-cook-cites-gop-tax-reform-as-driver-in-350b-us-investment

MAGA!
 
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