By Sahid Fawaz
One of the richest companies in the world is also one of the worst at paying American taxes. And it has a plan to stiff American coffers by $50 billion.
“Apple, the world’s most valuable company, has always proudly trumpeted its California roots. But the most American of all tech companies has never been a fan of paying back into the system that facilitated its success. On Wednesday, it announced that now that the US government has sufficiently capitulated on corporate tax rates, it will pay a fraction of the taxes it previously would have owed.
For years, Apple has held billions of dollars of cash overseas and insisted it won’t bring it home until the US gives it a better deal on the taxes it would have to pay to repatriate the funds. As of 2017, that cash pile had grown to an astonishing $252 billion. Now that lawmakers have passed a $1.5 trillion tax cut that primarily benefits corporations and the wealthy, Apple sees its chance to go forward with bringing that cash home before anyone changes their mind. According to Apple’s announcement, it’ll pay a one time tax of $38 billion. It will also build a new campus in an unannounced location, and create 20,000 new jobs.
Apple doesn’t have to pay that bill all at once. But it’s clear the company sees the one-time 15.5 percent tax on all of a company’s overseas holdings that is included in the new tax bill as a great deal. And why not just get this over with before Congress starts monkeying around with taxes again down the road.
If Apple had paid the previous tax rate of 35 percent, its bill would have come out to around $88 billion. Now, that money can go into making the company even larger and providing more cash to hold overseas until Uncle Sam cries uncle again.”
For the rest of the story, check out the full Gizmodo article here.