Apple is making massive investments in the U.S. economy over the next five years, and workers will be the big beneficiaries. This is due – in part- to tax reform says CEO Tim Cook.
Apple announced it will make both capital investments and human capital investments. Investments will total $350,000 billion to our economy. That’s the size of Vermont, Wyoming, South Dakota, Montana, North Dakota, Alaska, and Maine’s GDPs combined – and then some.
Apple plans to:
– Spend $30 billion in capital investments over five years which includes a new campus and data centers across the country
– Boost its advanced manufacturing fund from $1 billion to $5 billion
– Spend $55 billion on domestic suppliers and manufacturers
– Give each Apple employee a bonus of $2,500 in restricted stock
– Add 20,000 new jobs to the U.S. economy
The benefits to the economy and workforce are clear, but Uncle Sam also stands to gain from a one-time tax payment of $38 billion. That’s because Apple, the largest US taxpayer, is taking up the offer to bring home profits made overseas at a one-time lower tax rate of 15.5 percent. A provision of the tax reform bill.
Tim Cook explains:
"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.
"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."
Apple’s announcement joins the growing list of companies that are responding to corporate tax cuts and tax reform by reinvesting in their businesses and rewarding workers with bonuses, pay increases, and new jobs. Last week, Walmart announced that they were boosting starting wages, giving out bonuses, and adding parental leave benefits.
Despite the doom-and-gloom that many on the left and the news media predicted from the Republican-led tax reform efforts, we’re seeing greater optimism among companies and consumers and increased investments that will stimulate our economy to grow and benefit American workers and families.