Apple is well known for its controversial decision to store its cash overseas to avoid paying U.S. corporate taxes. Earlier this year, the company released an announcement that it would pay $38 billion in taxes to bring the tax haven money back into the U.S.
The corporation’s foreign tax haven is currently storing about $250 billion in cash. Under President Trump’s recent change to the tax code, many corporations are receiving myriad benefits, including significant tax cuts on net income. One particular clause of the new tax law states that corporations can bring money back to the U.S. with lower financial and legal penalties.
Coming Back Home
The San Francisco-based developer also mentioned it’s looking to create 20,000 jobs in the U.S. in the next five years. The new jobs will be located at Apple offices, meaning the jobs are office jobs, not retail. The move to create 20,000 more jobs is bold considering Apple only employs 84,000 people in the U.S. as developers, product designers, and engineers. A good amount of the 20,000 jobs will be for its new U.S.-based data centers, with the newest built in Reno, Nevada just a few weeks ago.
It’s also moving forward with its new campus’s construction, although it hasn’t confirmed its size or where it will be located. We also don’t know if it will be a flagship campus or just a regular office location. Apple’s newest office is Apple Park, a large circular building resembling a spaceship, located in Cupertino, California.
The statement did mention that the new campus will house technical support staff. The location is planned to be revealed later in 2018. Apple’s current CEO, Tim Cook, says, “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.”
Implications of Apple’s Tax Move
Some companies, like Walmart, are taking the tax cut and laying off employees and shutting down stores overnight. Other companies, like Lowe’s, are taking advantage of the tax cut and planning to add thousands of jobs. Apple’s initial decision to store its profits in overseas tax havens is a point of contention with many consumers, but its recent announcement brings hope back to many in the U.S.
We hope other corporations will follow in Apple’s footsteps to bring jobs, new offices, and back-tax payments back to domestic soil for the benefit of U.S. citizens. Tech companies investing in the U.S. workforce will not only help the country boost its economy for years to come, but will also help support the country’s status as a technological pioneer.Tags: app store, Apple, corporate tax law, data centers, data engineering, iPhone app developer, job creation, mobile tech, mobile technology, mobiletechnology, news, retail jobs, San Fran app developer, San Francisco app developers, tax havens, taxes, tech, tech news, technology advancement, united states, US workforce