On Wednesday, Apple announced it will invest over $30 billion in capital expenditures in the U.S. over the next five years, as well as building a new campus in the United States and hiring 20,000 more employees in that same period. 84,000 people currently work for Apple; most of them in California.
The location of the new campus will be revealed later this year. Apple’s statement noted that Apple has created and supported over two million jobs in the U.S. and that the company will spend roughly $55 billion in 2018 with domestic suppliers and manufacturers. Apple estimated its direct contribution to America’s economy over the next five years would total over $350 billion.
Tim Cook, Apple’s CEO, stated, “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. 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 Trump Administration recently lowered the standard corporate tax rate, permitting a one-time break on cash held overseas. The Chicago Tribune reported, “Apple plans to take advantage of that provision to bring back most of its roughly $252 billion in offshore cash, generating a tax bill of about $38 billion. That anticipated tax bill implies Apple intends to bring back about $245 billion of its overseas cash, based on the temporary tax rate of 15.5 percent on foreign profits.”
The Verge noted, “Apple did say that its forthcoming 20,000 jobs will be located at Apple campuses — which indicates that they aren’t retail positions.”