Say what you will about President Donald Trump’s personality, his tax plan is working.
Tech giant Apple announced this week that it is planning to build a new corporate campus in the U.S. which will put an estimated 20,000 Americans to work. The company says its ability to expand at home is largely thanks to a Trump administration tax provision which will allow it to bring around $245 billion in overseas funds back stateside.
Here’s more information via The Chicago Tribune:
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.
Apple has earmarked about $75 billion of the money currently overseas to finance $350 billion in spending during the next five years. The spree will include the new campus, new data centers and other investments.
But most of the $350 billion reflects money that Apple planned to spend with its suppliers and manufacturers in the U.S. anyway, even if corporate taxes had remained at the old 35 percent rate.
Apple is one of many companies reinvesting in the U.S. and its workers following approval of the Republican tax deal. Other major American business like Wal-Mart, American Airlines, AT&T, Bank of America, Nationwide Insurance, Comcast, JetBlue and US Bancorp are giving employees $1,000 bonuses thanks to successful efforts to slash the corporate tax rate from 35 percent to 21 percent.
While the bonuses are one-time perks, GOP lawmakers insist that these businesses will later be able to provide permanent pay hikes to their American employees thanks to the plan.