Multiple sources are reporting that Apple Computers is likely to repatriate upwards of $200 billion into the United States following the passage of the GOP tax legislation; citing a key provision that allows international corporations to bring American dollars back to the country at a reduced rate.
“Apple has been actively preparing to repatriate over $200 billion in overseas cash since 2016. With the Tax Cuts and Jobs Act of 2017 cutting the repatriation tax rate to 15.5 percent, Apple can now bring all of its foreign profits back to the U.S. at a nearly 20 percent discount,” writes VentureBeat.
According to CNBC, Apple CEO Tim Cook said that bringing the funds back to the US is “what’s good for America.”
“The issue is not that there’s a tax on international earnings. The issue is the existing tax has been crazy,” Cook said. “No one would bring it back at a 40 percent—I mean, 35 percent federal and then state taxes. That’s the problem. I think it’s smart for the United States to have some kind of tax revenue for international earnings—if that tax were reasonable.”
The move comes as other American corporations react overwhelmingly positive to the GOP tax cuts. Major companies, such as AT&T, American Airlines, Boeing, and more doled out large holiday bonuses to US-based workers following the passage of the bill.
US Economy SMASHES ESTIMATES, Adds 230K Jobs
The United States economy added approximately 228,000 jobs in November alone; slashing the unemployment rate to just 4.1 percent and busting expectations that predicted payrolls to grow by 200,000.
According to CNBC, average hourly earnings also rose by 0.2 percent in the same month; resulting in 2.5 percent growth in 2017.
“The November employment data is largely as expected. For an expansion that began in mid-2009, no negative surprises are welcome,” said a senior economic analyst at Bankrate.com. “The lingering impacts of recent hurricanes and flooding have reverted back to relative calm in the statistics, meaning that this is a ‘cleaner’ number.”
Surprisingly, the second largest gains were seen in the manufacturing sector; adding 31,000 jobs in the industry. The economy saw a total in goods-producing occupations tick upwards to 62,000.
Construction also saw steep gains, adding 24,000 jobs –most of which were in “specialty trade” contracts.
“With continued improvement in the labor market, room for continued upward trajectory in 2018 is likely limited because there’s not much slack left to hire workers for further growth,” said one economist.
GREAT AGAIN: $2 TRILLION Added to US Economy Under President Trump
The United States Stock Market has added over $2 trillion to the American economy since President Trump won the 2016 presidential election; smashing expectations and further signaling a robust recovery following years of stagnant growth under Barack Obama.
According to CNBC, the S&P 500 stock index grew by $2.04 trillion since Donald Trump defeated Hillary Clinton last November; soaring after the election on renewed hopes of significant tax reform and the reduction of burdensome regulations imposed by Trump’s predecessor.
The largest gains were seen in information technology, financial services, healthcare, and materials.
President Trump now sets his sights on reforming the nation’s complicated and outdated tax code, a key campaign promise to deliver tax relief to millions of American families and businesses.
“People are in wait-and-see mode in terms of tax reform. We get a bit of a pop every time it gets mentioned, but I think the market is in a bit of disbelief,” said one market strategist.
Analysts also credit President Trump’s pledge to rebuild the American military with the massive rise in stocks associated with Defense contracts, reporting some businesses have seen growth of 30% since the US election last fall.