Wednesday 23 January 2019

Apple to hire 20,000 workers in £250bn boost to US economy

The pledge follows radical changes to US tax laws.

Apple (PA)
Apple (PA)

By Associated Press Reporters

Apple plans to build another corporate campus and hire 20,000 workers in the next five years as part of a 350 billion dollar (£250 billion) commitment to the US economy.

The pledge announced on Wednesday is an offshoot from the sweeping overhaul of US taxes championed by President Donald Trump and approved by Congress last month.

Besides dramatically lowering the standard corporate tax rate, the reforms offer a one-time break on cash being held overseas.

Apple plans to take advantage of that provision to bring back more than 250 billion dollars (£180 billion) in offshore cash, generating a tax bill of roughly 38 billion dollars (£27 billion).

Chief executive Tim Cook had promised the company would bring back offshore cash if it could avoid being taxed at the 35% rate that had been in effect under the previous tax law.

“Apple is a success story that could only have happened in America, and we are proud to build on our long history of support for the US economy,” Mr Cook said.

The Cupertino, California, company says it will announce the location of a second campus devoted to customer support later this year.

The company did not say how big the second campus will be, or how many of the additional 20,000 workers that it plans to hire will be based there.

But it is certain that cities across the US will offer Apple tax breaks and other incentives in an attempt to persuade the company to build its second campus in their towns.

That was what happened last year after Amazon announced it would build a second headquarters in North America to expand beyond its current Seattle home.

The online retailer received 238 proposals from cities and regions in the US, Canada and Mexico. Amazon is expected to announce the winning bid later this year.

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