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Apple's $350billion windfall for the US economy

Firm will create 20,000 new jobs, build a second HQ, give all their employees a $2,500 bonus, and pay $38billion in US taxes on their foreign cash in the next five years

  (News Agencies) Apple plans to inject more than $350billion into the US economy over the next five years by creating 20,000 jobs, building a second headquarters, and by paying a $38billion tax bill on their foreign assets.
The company - the nation's largest taxpayer - already employs 84,000 people in all 50 states.
Now, under Trump's tax reforms, they are set to pay off the biggest repatriation tax bill in history on their $252.billion in overseas cash, with the money filtering back into the American economy.
They also told its employees on Wednesday that the iPhone maker is issuing a bonus of $2,500 worth of restricted stock units following the new U.S. tax reform, according to Bloomberg.
Planned capital expenditures in the US, investments in American manufacturing over five years and a record tax payment upon repatriation of overseas profits will account for approximately $75 billion of Apple's direct contribution, the firm said in a statement on Wednesday.
'Apple is a success story that could only have happened in America, and we are proud to build on our long history of support for the US economy,' said Tim Cook, Apple's CEO. He added: 'We believe deeply in the power of American ingenuity, and we are focusing our investments in areas where we can have a direct impact on job creation and job preparedness. We have a deep sense of responsibility to give back to our country and the people who help make our success possible.'
The location of Apple's new campus will be announced later this year. They say it will initially house technical support for customers.
In their statement on Wednesday, the company announced plans to make about $38billion in tax payments on its $252.3 billion in overseas cash in accordance with the tax law passed late last month. That move hints that they may be planning to repatriate that money.
The announced tax payment was roughly in line with what analysts expected from the tax bill, which requires companies to pay a one-time tax on foreign-held earnings whether they intend to bring them back to the United States or not.
Apple had set aside $36.3billion in anticipation of tax payments on its foreign cash, meaning the payment would not represent a major impact on its cash flow this quarter.
Apple also said it would boost its advanced manufacturing fund, which it uses to provide capital and support to suppliers such as Finisar Corp and Corning Inc, from $1 billion to $5 billion.
Apple said it plans to spend $55 billion with U.S.-based suppliers in 2018, up from $50 billion last year.
About a third of the new spending will be on data centers to house its iCloud, App Store and Apple Music services, a sign of the rising importance of subscription services to a company known for its computers and gadgets. The company has data centers in seven states and also on Wednesday broke ground on an expansion of its operations in Reno, Nevada, where local officials granted it tax breaks on a downtown warehouse.



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