Apple, the world’s most valuable company, said Wednesday it will spend $350 billion in development and create 20,000 jobs in the United States in the next five years, outlining for the first time how it will invest in the U.S. economy following the new tax law passed late last year.
Apple said that as required by the new tax law, it will pay $38 billion in taxes from its massive cash holdings overseas. The payment is so far the largest announced from the tax plan changes, experts said.
“On the one hand, this is a record payment. On the other hand, it shows how successful they’ve been at gaming the system” around the world, said Edward Kleinbard, a law professor at the University of Southern California.
Given the new corporate tax rate of 15.5 percent, that indicates Apple is returning around $245 billion in cash to the United States. In its last earnings report, the company reported it held $252 billion in cash overseas.
Apple has for years faced scrutiny and criticism around the world for its tax policies. The company recently agreed to pay more than $100 million in taxes to British authorities after an audit.
(c) 2018, The Washington Post · Hayley Tsukayama