Politics Apple to hire 20,000, open second headquarters and pay $38 billion tax bill on overseas profits

https://www.usatoday.com/story/tech...ion-trump-tax-bill-open-second-hq/1041261001/

LOS ANGELES — Apple, which has come under major criticism for building much of its popular products in China, announced a sweeping set of moves partially tied to the recent tax bill, including paying $38 billion in taxes from profits made overseas and opening a second corporate campus.

The iPhone maker said it will spend $55 billion with domestic suppliers and manufacturers in 2018 and will create over 20,000 new jobs through hiring at existing Apple campuses and a new one for technical support. Apple already employs 84,000 people in all 50 states.

"Apple is a success story that could only have happened in America, and we are proud to build on our long history of support for the US economy," said Tim Cook, Apple's CEO.

In a news release, Apple didn't mention moving production of iPhones to the U.S. They are currently designed at Apple's headquarters in Cupertino, California, but built at the Foxconn plants in China.

Apple said it anticipates repatriation tax payments of approximately $38 billion as required by recent changes to the tax law.

 

My 401K is way up the past year, and the start of this year is ridiculous. I got a pay raise, too. My check is $20 (x 26 pay periods = $520) bigger.

Hundreds of companies are paying bonuses to their regular employees (e.g. not executives) and raising their minimum pay grade. Walmart, for example, is paying no less than $11.

Thanks Obama.

 

Sarcastically.

 

Not said in the opening post/article is the total investment by Apple will be $350 BILLION.

That'a a nice bump for GDP, 20,000 new jobs, and a few minutes' worth of operating expenses for the government (the massive $30B+ in taxes Apple is going to pay).

 

Paul Krugman's analysis on Nov 9, 2016. He won a Nobel Prize in economics, he must be smart!

https://www.politico.com/story/2016/11/krugman-trump-global-recession-2016-231055

Paul Krugman: Trump will bring global recession

The economic fallout of a Donald Trump presidency will probably be severe and widespread enough to plunge the world into recession, New York Times columnist Paul Krugman warned in a New York Times opinion piece published early Wednesday.

Calling Trump the "mother of all adverse effects," the Nobel Prize-winning economist predicted that the GOP nominee's administration could quickly undo the progress that the markets around the world have made in the eight years since the financial crisis.

...

"Now comes the mother of all adverse effects — and what it brings with it is a regime that will be ignorant of economic policy and hostile to any effort to make it work," Krugman wrote. "So we are very probably looking at a global recession, with no end in sight. I suppose we could get lucky somehow. But on economics, as on everything else, a terrible thing has just happened."

 

They have so much reserve money that this is equivalent to the cost of a Blazers cheap seat ticket.

 

The also announced they're using their "reserve" money to pay each of their 100,000+ employees a $2500 bonus.

Those who opposed the tax bill that passed claimed the companies would use the money to buy back stock and it wouldn't help main street.

 

The DOW only recaptured its previous high (under GW Bush) plus about 4000 points under Obama's watch. The DOW is up ~8000 since Trump's election, just over a year.

It is a good time to be in the stock market these days. The market is factoring in expectations of higher earnings due to the tax law as well as extra spending by the millions of people already given bonuses by hundreds of companies, or those given pay raises by some of those companies.

There aren't a lot of people pessimistic about continued growth and stock price increases.

 

Amazon is also building a 2nd HQ.

 

Amazon has a huge presence in Seattle, of course. Yet there's also Microsoft and Boeing there. Amazon (or the other two, among many others) owns the city....