YOU MAY HATE HIM BUT TRUMP IS A BUSINESS GENIUS: APPLE’S US$350 BILLION INVESTMENT PLAN PROVES IT
Apple’s CEO Tim Cook doesn’t like Donald Trump. It’s not hard to understand why Mr. Cook (a liberalist) and Mr. Trump (a nationalist)don’t see eye to eye – until now. The Apple chief had previously blamed the U.S. president as a white supremacist and a racist who promotes “hate and bigotry” in the United States. He even slammed Trump’s decision to withdraw from Paris Agreement.
While both individuals have the opposite political views, they have finally found a common interest – business. Apple’s blockbuster announcement that it will repatriate almost all of its US$250 billion in overseas cash, create 20,000 new U.S. jobs, open a new U.S. campus, and invest US$350 billion to the U.S. economy ends any serious debate about the new tax reform law.
Washington: President Donald Trump said in a tweet Wednesday that Apple Inc.’s decision to bring hundreds of billions of overseas dollars back to the US is a “huge win for American workers and the USA!”
“I promised that my policies would allow companies like Apple to bring massive amounts of money back to the United States,” Trump said in the tweet. Great to see Apple follow through as a result of TAX CUTS.”
The iPhone makers announced on Wednesday that it would make the move, paying about $38 billion in taxes on the money and spending tens of billions on domestic jobs, manufacturing and data centers in the coming years. Apple also told employees that it’s issuing stock-based bonuses worth $2,500 each following the new US tax law, according to people familiar with the matter.
In its December approval of the most extensive tax-code revisions since 1986, Congress scrapped the previous international tax system for corporations— an unusual arrangement that allowed companies to defer US income taxes on foreign earnings until they returned the income to the US. That “deferral” provision led companies to stockpile an estimated $3.1 trillion offshore and many were criticized for the moves, including Apple.
Trump deserves every single credit for creating a business-friendly environment and reforming the tax code which even Tim Cook finds hard to resist. In fact, Trump had no idea the explosive effect of his tax reform until Apple’s juicy announcement. The U.S. President was practically on cloud nine after Apple unveiled its ambitious investment plan that he personally called and thanked Mr. Cook.
Trump said – “In the news, I heard US$350 billion, I thought, ‘You mean US$350 million? That’s going to be a beautiful plant.’ They said, ‘No, it’s three-hundred and fifty billion dollars.’ And I just called Tim Cook and I thanked him.” He got so excited that he sang songs of praise for the Apple CEO – “Tim Cook is a great guy – the head of Apple.”
Although the plan is quite vague, Apple said it would directly contribute US$350 billion to the U.S. economy over the next 5 years, with the bulk – about US$55 billion this year – to be splashed on a new campus to house technical support for customers and US$10 billion toward data centres across the country. Initial fund for domestic manufacturing will be increased to US$5 billion from US$1 billion.
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