Apple said today that it will make $38 billion in tax payments as part of a plan to repatriate its gigantic stash of overseas cash under new tax laws favorable to big corporations.
Apple had long resisted returning to the US its $265 billion in overseas money because those holdings would be taxed at a rate of about 40 percent, CEO Tim Cook told “60 Minutes.” Under the new tax law passed last month, however, Apple could face a one-time rate of 15.5 percent for bringing that wealth back to the US.
Apple also said Wednesday it will invest over $30 billion in the U.S. over the next five years, creating 20,000 new jobs.
Though Cook and President Donald Trump have disagreed on issues such as immigration, Apple’s announcement could placate the White House, which has promoted the idea of bringing American jobs back from overseas.
Experts say Apple and other firms that bring money back to the U.S. could use that wealth for mergers and acquisitions. The rest is expected to be deployed for stock buybacks, higher dividends, debt repayment, and business expansions.