Apple Announces Moves Partially Tied to New Tax Bill

Apple yesterday announced a sweeping set of moves partially tied to the recent tax bill, including paying $38 billion in taxes from profits made overseas as required by recent changes to the tax law.; creating more than 20,000 new jobs at existing Apple campuses and a new corporate campus it plans to build; and pledging to spend $30 billion in capital expenditures in the U.S. over the next five years. Over $10 billion of Apple’s expanded capital expenditures will be investments in data centers across the U.S. Over the last decade, Apple has invested billions in data centers and co-located facilities in seven U.S. states. Apple is also giving $2,500 stock bonuses to most of its 138,126 employees worldwide, which will roll out in the next few months.

“Apple is a success story that could only have happened in America, and we're proud to build on our long history of support for the U.S. economy,” said Tim Cook, Apple’s CEO. “We believe deeply in the power of American ingenuity, and we're 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.”

Total Retail's Take: Apple is the latest corporation to announce new payouts tied to the tax bill, a landmark win for President Trump and the Republican-led Congress, which say the lower corporate rate should lead to faster job growth, higher corporate profits and steeper wages, as companies take some of those tax savings and invest them. Critics have warned companies may instead funnel their savings into buybacks and dividend increases, side-stepping workers. So far there have been positive signs that they may not be the case.