However, Apple now appears to be one of the U.S. technology companies likely to benefit most from the Trump- and GOP-led tax bill approved by Congress in December.
That bill will reduce Apple’s potential tax burden on its overseas cash holdings by around $47 billion, according to one estimate. Instead of the 35 percent tax Apple would have had to pay on any overseas cash it brought back to the U.S., the new tax law imposes on one-time, 15.5 percent tax on those funds, whether or not they’re repatriated.
Apple yesterday touted its new one-time tax payment of around $38 billion as likely “the largest of its kind ever made.” Apple also outlined its five-year plan to spend $30 billion in capital investments in the U.S. over the next five years, which the company said would create more than 20,000 new jobs.
$350B in Economic Impact
In an interview with ABC News last night, Apple CEO Tim Cook (pictured above) offered carefully worded responses about the tax bill’s impact on his company’s capital spending plans, noting that it would have made some of the intended investments one way or the other.
“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 that we would have done in any situation,” Cook said on ABC’s World News Tonight with David Muir. “There are two parts of tax bill, there’s a corporate piece and an…