Apple shed some light Wednesday on what it plans to do with the roughly $250 billion it’s had stashed in overseas accounts. Under the new tax code, Apple can now bring the money back home at a greatly reduced 15.5% tax rate. The old federal tax rate was 35%.
Here’s what the company says it’ll do with the money:
- Pay about $38 billion of it to government in repatriation taxes.
- Spend more than $30 billion to create U.S. 20,000 jobs over the next five years.
- Open a new campus at a U.S. location that will be announced later.
- Expand its Advanced Manufacturing Fund (announced last spring) from $1 billion to $5 billion.
- Contribute $350 billion to the U.S. economy over the next five years.
Here’s how Apple gets to that big number: “Combining new investments and Apple’s current pace of spending with domestic suppliers and manufacturers—an estimated $55 billion for 2018—Apple’s direct contribution to the US economy will be more than $350 billion over the next five years, not including Apple’s ongoing tax payments, the tax revenues generated from employees’ wages and the sale of Apple products.”