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

[Denny Crane]

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.

 

[Denny Crane]

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.

 

[Haakzilla]

Thanks Obama. (genuinely)

...sig worthy?!

 

[Denny Crane]

...sig worthy?!

Sarcastically.

 

[Denny Crane]

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).

 

[bodyman5000 and 1]

Didn't know USA today was fake news.

 

[DaLincolnJones]

but...but....Trump is crazy! He does not know what he is doing!...and, ah, this is all because oboma....and, ahh, yeah

 

[Denny Crane]

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."

 

[Further]

Great news. It is indicative of the improving economy Obama set in motion and Trump is building on. Economically I don’t have a problem with Trump. My problem is that 1) he’s racist/sexist, 2) he let’s economics subvert the protection of the citizens and the ling term health of the nation, the environment health and upward mobility of the lower and middle classes.

 

[DaLincolnJones]

Great news. It is indicative of the improving economy Obama set in motion and Trump is building on. Economically I don’t have a problem with Trump. My problem is that 1) he’s racist/sexist, 2) he let’s economics subvert the protection of the citizens and the ling term health of the nation, the environment health and upward mobility of the lower and middle classes.

ya know, I make an effort to ignore your posts in general, but to give obummer credit, when the very companies who are returning to the US and are giving bonuses to employees state that it is because of policies set in place by President Trump, makes your posts laughable.

Add to that your regurgitated Mourning Joe smattering of foolishness, you might want to think through what you are trying to say as to present a valid idea.

 

[bodyman5000 and 1]

You know Linc, you nailed it! SlyPokerDog is as mindless as nitwit Joe. errr, judging by his post of course.

Nope. You haven't got it down. You can say the post is as mindless as nitwit Joe.

You gave it a good try with the last part.

 

[MarAzul]

 

[stampedehero]

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.

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

 

[Denny Crane]

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.

 

[Denny Crane]

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.

 

[donkiez]

Good news for sure. Apple is building a second HQ also. Soon you wont be considered a real corporation until you own at least one major city. Im worried the bubble will pop eventually but with the new tax bill that can is kicked down the road at least another year or two.

 

[Denny Crane]

Amazon is also building a 2nd HQ.

 

[Denny Crane]

Good news for sure. Apple is building a second HQ also. Soon you wont be considered a real corporation until you own at least one major city. Im worried the bubble will pop eventually but with the new tax bill that can is kicked down the road at least another year or two.

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....

 

[donkiez]

Yea Amazon just announced they narrowed their search. I bet it ends up in Atlanta or Raleigh.

 

[donkiez]

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....

There are others including health care and Universities but Amazon really owns the city. Its transformed it and added wealth like no other corporation. Amazon also owns like 20% of all Seattle's prime real estate and is growing faster than the other. Boeing is a big employer but is boom bust susceptible and has been transferring a large portion of its operations to Charleston for years now. Microsoft is a big presence but not they dont seem to have the same stamp on the city that Amazon does.

 

[donkiez]

I know you like articles DC so here is a good one that shows Amazons impact on Seattle. Its really unprecedented.

https://www.seattletimes.com/busine...seattle-is-now-americas-biggest-company-town/

 

[Denny Crane]

There have always been company towns.

 

[Denny Crane]

I know you like articles DC so here is a good one that shows Amazons impact on Seattle. Its really unprecedented.

https://www.seattletimes.com/busine...seattle-is-now-americas-biggest-company-town/

FWIW, I do read links like yours (that other people post). I post links to articles I read in the mornings, which is just my habit. That is, I like to read the news, first thing, and post links to what's relevant here. Hopefully it keeps people up to date on current events.

 

[jlprk]

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.

I've been missing your half-truths, Denny. Welcome back!

So...nothing about the half-trillion that Apple hid overseas, from which it will now spend a paltry 55 billion on itself. What great news, shiny new Apple buildings!

How did the Republican tax bill motivate Apple to transfer its stashed profits back into U.S. banks? Oh yeah, by vastly decreasing the tax rate Apple would pay! Your article forgot to say that.

So instead of giving in and gradually moving the funds at the higher tax rate several years in the future, Apple is allowed to suddenly transfer them all now at a lower rate. This fits with the overall theme of the bill, a one-time charge-up of the economy for a year or two to get short-term votes, but increasing the national debt by trillions, slowing the economy permanently due to interest rates.

 

[BrianFromWA]

Yea Amazon just announced they narrowed their search. I bet it ends up in Atlanta or Raleigh.

Don't sleep on Boston. I'd never go there, and it seems a "little fish, big pond" thing, but they've supposedly gone pretty far down the path...

 

[BrianFromWA]

I've been missing your half-truths, Denny. Welcome back!

So...nothing about the half-trillion that Apple hid overseas, from which it will now spend a paltry 55 billion on itself. What great news, shiny new Apple buildings!

How did the Republican tax bill motivate Apple to transfer its stashed profits back into U.S. banks? Oh yeah, by vastly decreasing the tax rate Apple would pay! Your article forgot to say that.

So instead of giving in and gradually moving the funds at the higher tax rate several years in the future, Apple is allowed to suddenly transfer them all now at a lower rate. This fits with the overall theme of the bill, a one-time charge-up of the economy for a year or two to get short-term votes, but increasing the national debt by trillions, slowing the economy permanently due to interest rates.

I thought the bolded #1 was common knowledge. Many of the people I've been discussing this with have had some acceptance of the "22% of 300B (or whatever) is better than 35% of $0" truth.
If Apple hasn't done bolded #2 in the ~15 years since the iPod came out and they started making money hand over fist, what makes you think that a more receptive business environment would ever have made them "give in"?

 

[jlprk]

Bigger Apple dividends! Denny's rich friends can melt extra lobster butter now and get even fatter.

 

[Denny Crane]

I've been missing your half-truths, Denny. Welcome back!

So...nothing about the half-trillion that Apple hid overseas, from which it will now spend a paltry 55 billion on itself. What great news, shiny new Apple buildings!

How did the Republican tax bill motivate Apple to transfer its stashed profits back into U.S. banks? Oh yeah, by vastly decreasing the tax rate Apple would pay! Your article forgot to say that.

So instead of giving in and gradually moving the funds at the higher tax rate several years in the future, Apple is allowed to suddenly transfer them all now at a lower rate. This fits with the overall theme of the bill, a one-time charge-up of the economy for a year or two to get short-term votes, but increasing the national debt by trillions, slowing the economy permanently due to interest rates.

Apple is paying ~$40B in tax, is bringing all the overseas money to the US. It's investment is $350B on top of that, plus 20,000 new hires.

Not sure about your math. ~$40B is greater than $0, in terms of balancing the budget. The $350B is the size of a big infrastructure bill that government would enact.

CBO scored the bill to lose $1.5T over 10 years, but assumed a sub 3% GDP growth rate. We've exceeded 3% GDP growth for 3 straight quarters, and it looks like we might get to 4% or higher.

 

[Denny Crane]

In perspective, $350B is about 1/2 of TARP, which some people credit with saving the banking system.

$350B is about 1/2 the stimulus bill that Obama rammed through a filibuster proof congress in 2009. (Tell me about running up debts some more. Obama ran up $10T in debt, the most in history).

Prior to that stimulus bill, the largest spending bill in history was a $286.4B highway (infrastructure) bill passed by republicans in 2005 and signed by GW Bush.

 

[jlprk]

If Apple hasn't done bolded #2 in the ~15 years since the iPod came out and they started making money hand over fist, what makes you think that a more receptive business environment would ever have made them "give in"?

Apple will have its ups and downs. Sometime in the future, it would have needed some of that cash and brought it back. And even if it didn't, it could be forced to, by increasing overseas profits tax rates.