Published: Mon, January 22, 2018
Industry | By Terrell Bush

Apple vows to contribute $350 billion to USA economy, create 20000 jobs

The economic contribution will not include tax payments, the release said, nor will it include tax revenues from products sales or employee wages. Cook refused to "take a position" on how the new tax plan will affect individual Americans but commented on the corporate tax saying, "I do believe the corporate side will result in job creation and a faster growing economy".

The technology giant on Wednesday unveiled a five-year plan to invest US$30 billion in the U.S. that will create more than 20,000 new jobs, the newspaper said.

With the announcement following the passing of a new tax bill late past year, President Donald Trump was quick to claim credit for Apple's decision. The company also announced it broke ground on a new facility in Reno, Nevada, yesterday - although details about this are also sparse.

Apple has announced plans to build a new campus in the United States, in addition to the recently completed Apple Park, as part of a major investment and job creation strategy.

Overall, Apple said it plans to create more than 20,000 new jobs and invest $350 billion over the net five years.

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Apple contributions to the United States economy will jump to $350 billion over the next five years.

The iPhone manufacturer now has roughly $250 billion in cash generated from sales of products outside the US. Apart from expanding in the existing initiatives for the students, new programs are as well to be introduced for 'teachers and teacher training.' One highlight in this regard is Apple's increment in funding for the ConnectED program that aims at the development of students belonging to historically underserved communities.

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

Over $10 billion of Apple's expanded capital expenditures will be investments in data centers across the US. After the repatriation tax payment, the aforementioned number could just be signifying the effects of a company as large as Apple through its normal growth and spending in the country. However, it's a departure from the huge share repurchases analysts were counting on to support Apple stock, thanks to the tax reform and upcoming cash repatriation. "If other companies say they're going to have new jobs too, it does add up".

The Trump administration will be no doubt very pleased with Apple´s announcement, which appears to show U.S. tax reform is having the desired effect.

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