Apple has announced a five-year, $30 billion investment plan that will fund a new US campus, as well as paying the US government $38 billion in taxes when it repatriates more than $250 billion in profits made outside of the US.
According to Reuters, the US technology giant is working on one of the country's biggest corporate investment plans after President Donald Trump cut taxes for large businesses seeking to repatriate profits accrued abroad.
Since the presidential election in 2016, Trump has heaped pressure on the company to invest more in the US, slamming it for outsourcing the manufacture of its popular products in Asia.
While Apple is unlikely to shift iPhone production to the US, it's investment programme should provide employment for some 20,000 people, as well as contracts for US-based suppliers.
I promised that my policies would allow companies like Apple to bring massive amounts of money back to the United States. Great to see Apple follow through as a result of TAX CUTS. Huge win for American workers and the USA! https://t.co/OwXVUyLOb1— Donald J. Trump (@realDonaldTrump) January 17, 2018
The company already spends tens of billions of dollars annually in its home nation, but it will increase its spending in the country to a claimed $350 billion over the next five or so years.
As part of the tax agreement with government officials, Apple will also be able to repatriate its $252.3 billion foreign cash pile.
In addition to the investment plan and the tax payment, it has also pledged to use $97 billion to cover debts accrued for share buybacks and dividends - mechanisms it used before the tax deal to distribute funds to shareholders without having to pay the tax on repatriated funds.
Furthermore, staff will also receive a 'dividend' from the move - a $2,500 bonus for all employees.
There are large parts of this that are a result of the tax reform, and there's large parts of this we would have done in any situation - Apple CEO Tim Cook
Investors have, however, said they'd give the company more flexibility for future buybacks or pay dividends. As a result, Apple shares jumped to $179.10 in response.
President Trump, not surprisingly, praised Apple's spending plans, claiming it as a victory for his government.
"I promised that my policies would allow companies like Apple to bring massive amounts of money back to the United States. Great to see Apple follow through as a result of TAX CUTS," he wrote on Twitter.
Speaking to ABC News, Apple CEO Tim Cook said: "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 we would have done in any situation."
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