After a decade of keeping profits overseas and outsourcing in Asian countries, Apple has suddenly discovered America’s workforce – thanks to President Trump’s domestic policies.
The world’s most valuable publicly traded company laid out its plans Wednesday in a statement that was full of big-dollar figures, though it said that much of the money reflected Apple’s current pace of spending.
Apple said it would invest $30 billion in capital spending in the U.S. over five years that would create more than 20,000 jobs. The total includes a new campus, which initially will house technical support for customers, and $10 billion toward data centers across the country. It also will expand from $1 billion to $5 billion a fund it established last year for investing in advanced manufacturing in the U.S.
In sharp contrast to corporate behavior under former President Barack Obama’s failed economic policy, the technology giant is repatriating billions, creating jobs at home and investing billions in infrastructure. This win-win story will likely get little media play, but it’s just one of many that shows that trickle-down works and works extremely well.
Apple’s $38 billion tax commitment is the largest such sum announced in response to the major overhaul of the U.S. tax code that President Donald Trump signed into law late last year. That law included an incentive for U.S. companies to bring home offshore holdings, with companies required to pay a one-time tax of 15.5% on overseas profits held in cash and other liquid assets.
Wow! Apple has discovered that the United States has workers too!
While Obama spent years pouring taxpayer dollars into failing companies, overtaxing working families and over-regulating businesses, Trump has taken the opposite approach. Lower taxes on everyone (including those evil corporations that hire everyone) and reduce regulation. Now the economy is booming, companies are hiring by the tens-of-thousands and manufacturing is coming back to the United States – something the Clintons and Obama said would never happen. Then again, they said 4% GDP would never happen again and it could happen within months.
How much money from Apple will the repatriation changes in the tax bill bring back into the country?
All told, Apple said it would directly contribute $350 billion to the U.S. economy over the next five years, with the bulk—about $55 billion this year, for example—coming from ongoing spending on parts and services from U.S. suppliers. That number also includes the federal tax payment and capital spending.
Wow, that’s one-fifth of the deficit Democrats said the tax changes would create over ten years – let alone five. That, if pushed out to the ten year period means that the tax changes could bring $700 billion into the U.S. economy over ten years – from ONE company.
Other companies that have harbored trillions of dollars overseas from the burdensome U.S. tax scheme will likely follow suit meaning that within just a few short years, the $1.5 trillion deficit the Congressional Budget Office’s craptastic static analysis estimated, could be totally eliminated by growth and repatriation alone. Who’d a thunk it? (besides Trump, Reagan and Kennedy)
Socialistic over-taxation is a redistributive strategy that has failed once again. Trump is returning America’s economy to one of capitalistic incentive and limited government. The results are bearing fruit just 12 months into his presidency.