The President of the United States, Donald Trump, is still holding back on pre-election statements. Let us recall that in his speech, while running for the highest office, Trump announced the recovery of the country’s economy through the repatriation of capital.
Apple Restores America’s Financial Independence
By the end of 2017, the US Congress passed amendments to the tax code that allow foreign capital to be repatriated and profitable business to continue with minimal financial losses. After all, the 35% tax rate was the main reason for moving business overseas.
According to experts, the company holds $250 billion in foreign accounts. Apple’s management promises to return the amount to the last cent and additionally invest $350 billion into the US economy over five years. The company also announced plans to build a headquarters and hire 20,000 employees.
Regarding taxes, Apple will have to pay a historic foreign capital entry tax of $38 billion. Meanwhile, the company’s profits within the US, considering the amendments to the tax code, are planned to be taxed at 21%.
Global financial experts doubt that Apple will fulfill the promised capital return, as any rational person understands that the company’s management will not simply give away $38 billion in taxes. In any case, there will be negotiations between Apple and the country’s president. So, it remains only to observe the events unfolding in America.
