Apple CEO Tim Cook cited President Donald Trump’s tax reform package as a driver behind the tech giant’s plans for a massive $350 billion investment in the U.S. Economy.
Apple announced on Tuesday that it will repatriate the vast majority of its $250 billion overseas cash back to the United States and invest the funds into the American economy. The company plans to add 20,000 jobs, build a new campus in a U.S. city and invest in the thriving app economy created through its iOS marketplace.
The massive cash repatriation is possible because of a provision in Trump’s tax bill that allows companies with cash from overseas profits to bring the money home at a lower tax rate. Apple will pay an estimated $38 billion in taxes as a result.
In an interview with ABC, Cook explained that though there are other contributing factors, “large parts” of the planned investment are the result of Trump’s tax-cut bill.
“I do believe the corporate tax side will result in job creation and a faster-growing economy,” Cook told ABC. “There are large parts of this that are a result of the tax reform, and there’s large parts of this that we would have done in any situation.”
Trump took to Twitter on Wednesday to celebrate the announcement.
“I promised that my policies would allow companies like Apple to bring massive amounts of money back to the United States,” the president wrote. “Great to see Apple follow through as a result of TAX CUTS. Huge win for American workers and the USA!”
Apple said that it will spend $30 billion on fixed assets, such as land, business, and equipment. The company will invest an additional $10 billion in data centers. Apple already has data centers in seven states, including North Carolina, Oregon, Nevada, and Arizona, according to a press release.
Apple’s cash repatriation met an estimate by Goldman Sachs regarding the amount of cash that would be brought back to the United States by all S&P 500 companies as a result of tax reform.
Goldman estimated that $920 billion in untaxed profits is held overseas by S&P 500 companies and that $250 billion would be brought back as a result of Trump’s tax reform, according to Business Insider.
Taking into account all US-based companies, $2.5 trillion in untaxed cash is sitting overseas, according to Citigroup.
“What we’ve been advocating for a while is the ability to bring that back without a huge penalty,” Cook said regarding repatriation. “We’ve always felt comfortable with paying a lot in taxes, just not a huge, huge amount.”
Apple currently hires 84,000 people in the U.S. The company says it supports a total of 2 million jobs at home. Every Apple product has some American-made parts that come from its 9,000 vendors in all 50 states.