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.